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Statistics and performance metrics in trading, CAGR, Sharpe, MAE, MFE, and others. Cointegration and option pricing.

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Indemos/Estimator

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Statistics in trading

Used for trading strategy evaluation in the Terminal application.

Status

Install-Package Estimator

GitHub Workflow Status (with event) GitHub GitHub

Ratios

  • CAGR - compound annual growth rate
  • Edge ratio or E-Ratio - ratio between MFE and MAE
  • Kestner ratio or K-Ratio - deviation from the expected returns curve
  • MAE - maximum adverse excursion or maximum unrealized loss
  • MFE - maximum favorable excursion or maximum unrealized profit
  • MAR - minimum acceptance return or a gain-to-pain ratio between returns and max loss
  • LR Correlation - correlation between a series and its linear regression
  • Sharpe ratio - reward to risk ratio for a selected period
  • Sortino ratio - reward to risk ratio for a selected period measuring downside
  • Standard Z-Score - probability of the losing or winning strikes
  • Sterling ratio - ratio between returns and average loss

Services

  • Cointegration - Johansen test
  • Option - Black-Scholes model

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