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Risk reward ratio: Why it means nothing without the win rate
The risk reward ratio compares what a trade can lose, from the entry to the stop, with what it can make, from the entry to the target. Risk $1 to…
Tag: backtesting
22 posts tagged backtesting, newest first.
22 posts · page 1 of 4
Blog
Fair value gap (FVG): A test on 26 years of S&P 500 data
A fair value gap (FVG) is a three-candle pattern: the first candle’s high and the third candle’s low don’t overlap, and the empty space between them…
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S&P 500 200-day moving average: What 76 years of data show
On Friday, 9 October 2026, the S&P 500 closed at 7,811.54, about 7.7% above its 200-day moving average of roughly 7,251. It has closed above the line…
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Iron condor: What 38 years of S&P 500 data say about it
An iron condor is four options with the same expiry: you sell an out-of-the-money put and an out-of-the-money call, and buy a put and a call further…
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Cash secured put: What 19 years of S&P 500 data say about it
A cash-secured put means you sell a put option and keep enough cash in the account to buy the 100 shares if the stock falls below the strike. You get…
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What is VWAP in trading? A test on 3 years of SPY data
VWAP, the volume-weighted average price, is the average price of the day weighted by how many shares traded at each price. It starts fresh at the…