Sensitivity Analysis

Sensitivity analysis is a powerful feature provided by Tradomate.one, enabling users to assess the sensitivity of their trading strategies to changes in input parameters.

By systematically adjusting individual parameters and observing their impact on key performance metrics, users can identify which parameters significantly influence strategy performance and make informed decisions to optimize their strategies accordingly.

Key Features:

Parameter Sensitivity Testing: Tradomate.one allows users to conduct sensitivity analysis by systematically varying input parameters and observing the resulting changes in strategy performance metrics.

Incremental Adjustments: During sensitivity analysis, input parameters are adjusted incrementally, typically by ±10%, while keeping all other parameters constant. This systematic approach allows users to isolate the impact of individual parameters on strategy performance and identify sensitivity thresholds.

Performance Metrics Evaluation: Sensitivity analysis results are evaluated based on changes in key performance metrics, such as profit and loss, drawdown, win rate, and risk-adjusted returns. Users can assess the magnitude of changes in these metrics relative to parameter adjustments to determine parameter sensitivity.

Threshold Identification: Parameters that lead to significant changes in strategy performance metrics, typically exceeding a predefined threshold (eg., ±25%), are identified as sensitive parameters. These parameters have a substantial impact on strategy performance and warrant further analysis and optimization.

Optimization Insights: By identifying sensitive parameters through sensitivity analysis, users gain valuable insights into the drivers of strategy performance and can prioritize optimization efforts accordingly. Users can refine parameter settings, conduct further analysis, and optimize their strategies to improve overall performance and resilience to market conditions.