From the course: Practical Python for Algorithmic Trading
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How to interpret the backtesting dashboard - Python Tutorial
From the course: Practical Python for Algorithmic Trading
How to interpret the backtesting dashboard
- [Instructor] How has our investment strategy performed over time? We can see this dashboard from December 16 when Microsoft acquired LinkedIn, until nowadays, 14th of March. We have four charts, the equity, the profit and loss, the trades and the volume. The strategy made 17 trades, operations or transactions, as you may understand it better. To understand the details of the operations, let's click on the zoom button and go to this first periods. In the profit loss chart, we have these two markers and the first one tells us size 153 trades, with an increase of 58% from the date that they were bought around mid June. Now, if we zoom on this area, we will see two operations. We will see the details of the next operation because we short the stock. In other words, we sold 153 shares to later buy them on the 25th of October and earn 1.5% on the equity. We see that this is a short operation because the symbol is down. We…
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