Hi,
what would be the best practices to maintain good Healthy Trade Ratio?
Regards,
Mykola
QUANTCONNECT COMMUNITY
Hi,
what would be the best practices to maintain good Healthy Trade Ratio?
Regards,
Mykola
The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.
Jack Simonson
Hi Mykola,
Right now we are in the process of fixing a bug, but a Healthy Trade Ratio looks for more trades than days an algorithm is running for. The Healthy Trade Ratio indicator is not a strict metric or requirement for anything, but it is helpful to keep an eye on to make sure your algorithm is functioning properly. Maintaining a health trade ratio mostly comes down to ensuring you are working with the proper data resolution and universe for a strategy. Placing one trade and holding a security for a long period of time might be profitable, but is not a good trades/days ratio. However, if you have an algorithm that runs 100 days and places 99 trades, this is not necessarily a bad feature, but it will not officially meet the metric. Again, this is a general guide to making sure that users examine important features of their algorithms or Alpha submissions that go beyond pure profitability.
Mykola Dobrochynskyy
The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.
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