There are five basic steps to evaluating a trading system or track record. The steps are listed here, and each is described fully in its own chapter of this manual. TSPE will walk you through each step.
1. Enter (Import) a Track Record and Elaborate on Track Record
First you must give TSPE a track record to analyze. A track record is the list of profits and losses from trading activity. This can be based on actual trading results or on simulated trading. See "Getting your P&L string ready" for tips.
The raw track record entered may require adjustments for commission, slippage, sample size, parameter count, etc. TSPE walks you through all possible considerations. When the complete P&L has been entered, you will view a chart of your trade frequency. This screen gives a graphic presentation of the profits and losses generated by your trading system.
2. Choose Your Goals
Set your dollar goals and the time (in terms of number of trades).
3. View TSPE's Results
The capital analysis charts lets you see the probability of reaching your goal at all capital stake levels. Capital Analysis runs may take a good deal of time, with a high percentage of that time spent calculating the final fractional percentage points.
Start with Step 1.