Number of Trades Definition

Number of Trades or # Trades is simply the number of trades taken by the backtesting engine for a particular trading strategy during a particular time period.

Extra Insight:

I have two reasons for prominently recording the number of trades:

  1. The opportunity to trade determines the opportunity to profit and also determines the requirements for capital.
  2. Comparing the number of trades between backtesting runs is a good consistency check.

Updated 11/12/08.

October 22nd, 2008 Filed under Glossary

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