Comprehensive Money Management
Software for Stocks & Futures

Sign In

System Analysis

Continually monitoring and evaluating your trading system is absolutely necessary for long term trading success. Markets change, requiring your trading system to adapt to these changes or possibly require an entirely new system.

Successful traders confidently know the true worth of their trading system. Traditional back-testing and optimization using historical data can make just about any system profitable. The true test of your trading system is how it performs under real time market conditions. STOPS provides complete performance evaluation of your actual trading account, providing un-compromised forward analysis of your trading system.

STOPS helps you answer the following important system analysis questions:

STOPS System Analysis features:

The following examples illustrate STOPS System Analysis:

Reports Selection Screen.   (View Full-Size)

Report Parameters features:

Report Parameters Screen.   (View Full-size)

Profitability - Your system's bottom line and one of the most important system performance measures.

• Profit factor (gross profit / gross loss). Successful traders maximize profit and minimize risk. A profit factor of 3 or more is an effective system.
• Average win / average loss ratio. A ratio of 2 or more is a good sign your system is performing efficiently.
• Positive and negative outlier (aberration) trades. Outlier trades are infrequent trades with profit / loss of 3 or more standard deviations from the average. These trades tend to artificially inflate or deflate profits. Successful systems have few outlier trades.
• Net Profit, gross profit, gross loss, percent profit and standard deviation of gross profit.
• Current Equity and cash.

Draw-down, Run-up - Use account extremes to analyze your system reward and risk tendencies.

• Largest draw-down, average draw-down, largest losing trade, average losing trade, largest loss ratio, recovery factor, minimum equity, average equity. Know exactly how prepared you are for a string of losses. Assure your equity is large enough to carry you through the inevitable "dry" periods.
• Largest maximum adverse excursion, average adverse excursion. Determine if a large series of volatile individual trades are seriously impacting your system.
• Largest run-up, average run-up, largest wining trade, average wining trade, payoff ratio, maximum equity. Assure you don't overestimate your system's performance by being overly optimistic.
• Largest maximum favorable excursion, average favorable excursion. Realistically determine if your system is working the way it was designed by analyzing the volatility of individual trades.

Risk - Measure your system's risk relative to your risk parameters.

• Largest percent risk, average percent risk, largest reward / risk ratio, average reward / risk ratio. Essential to good money management is managing risk. Assure your system is performing to your reward / risk parameters.
• Largest slippage, average slippage. Excessive slippage can impact your system performance. Evaluate your broker by analyzing slippage

Trade statistics. - Analyze the stability of your trades.

• Maximum consecutive wins, probability consecutive wins less than maximum consecutive wins, maximum consecutive losses, probability consecutive losses less than maximum consecutive losses. Helps you understand winning and losing streaks to avoid becoming overly confident or overly discouraged.
• Time in market, percent in market, longest flat period, average flat period, average length win, average length loss, longest winning trade, longest losing trade. Look for fundamental system flaws when your trading style is incorrect for the current market. Short term systems are exposed to unnecessary risk when time in market is excessive.
• Total trades, number winning trades, number losing trades, percent winning trades, percent losing trades, average trade.

System Performance Report.   (View Full-size)

The following equity charts illustrate some customization combinations available for all chart categories:

Gross Closed Equity per Trade bar chart.   (View Full-size)

Net Equity Curve per Month chart.   (View Full-size)

Percent Monthly Equity Gain / Loss bar chart.   (View Full-size)

Profit / Loss per Month bar chart.   (View Full-size)

Percent Profit / Loss pie chart.   (View Full-size)

Percent Outlier Profit pie chart.   (View Full-size)

Draw-down per Month bar chart.   (View Full-size)

Draw-down per Risk bar chart.   (View Full-size)

Run-up per Month bar chart.   (View Full-size)

Run-up per Risk bar chart.   (View Full-size)

Risk per Trade bar chart.   (View Full-size)

Risk Percent pie chart.   (View Full-size)

Reward / Risk bar chart.   (View Full-size)

Reward / Maximum Adverse Excursion bar chart.   (View Full-size)

Reward / Maximum Adverse Excursion per Trade bar chart.   (View Full-size)

 

Reward / Maximum Favorable Excursion bar chart.   (View Full-size)

Reward / Maximum Favorable Excursion per Trade bar chart.   (View Full-size)

Slippage per Trade bar chart.   (View Full-size)

Trade Length per Trade bar chart.   (View Full-size)

---

  Ordering Information

---

Other integrated STOPS money management features:

Trade Tracking

Position Sizing

Risk Control

Exit Analysis

Monte Carlo Analysis

Paper Trading

Tax Reporting