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Hi all,
I would like to deepen terminology of the report backtesting to understand better the results of performance report.
What does means RINA index? It's possible to have the important explain?
The RINA index is a proprietary index that combines Select Total Net Profit, time in the market, and drawdown calculations into a single reward/risk ratio, that can be used to compare strategies The larger the number the more efficient/risk adverse the strategy.
RINA Index = (Select Total Net Profit)/((average drawdown) x (percent time in the market))
Expectancy is the value of the chances on win/lose
If your system is 50/50 and a wining trade is 100 and a losing trade is 100, then the expectancy is 0
if your system is 70/30 and a wining trade is 100 and a losing trade is 100, then the expectancy is 40
if your system is 70/30 and a wining trade is 50 and a losing trad id 100, then you expectancy is 5
it translates the statistic win/loss taking into account the value of the win/loss
in other words a 70/30 system with big loser, will be worse than
a system with 20/80 and big winners and small losers