Ask price
The Ask price is the price a seller is willing to accept for a security.
Backtesting
Backtesting is a key component of effective trading system development. It is accomplished by reconstructing, with historical data, trades that would have occurred in the past using rules defined by a given strategy. The result offers statistics to gauge the effectiveness of the strategy. The underlying theory is that any strategy that worked well in the past is likely to work well in the future, and conversely, any strategy that performed poorly in the past is likely to perform poorly in the future.
Bid price
The Bid price is the price a buyer is willing to pay for a security.
Bracketed Sell Order / One-Cancels-the-Other Order - (OCO)
A Bracketed Sell Order is a pair of conditional orders stipulating that if one order executes, then the other order is automatically canceled. A Bracketed Sell Order combines a stop order with a limit order on an automated trading platform. When either the stop or limit price is reached and the order executed, the other order automatically gets canceled.
Equity curve
An equity curve is a graphical representation of the change in the value of a trading account over a time period. An equity curve with a consistently positive slope typically indicates that the trading strategies of the account are profitable, while a negative slope shows that they are generating a negative return.
ETF
An ETF is a basket of securities, shares of which are sold on an exchange. They combine features and potential benefits similar to those of stocks, mutual funds, or bonds.
Mid-price
The Mid-price is the mid-point between the quoted Bid price and Ask price for a security.
Security
A security is a tradable financial asset. The term commonly refers to any form of financial instrument, in this guide the term refers to stocks and Exchange Trading Funds (ETFs).
Short Position
A short, or a short position, is created when a trader sells a security first with the intention of repurchasing it or covering it later at a lower price. A trader may decide to short a security when they believe that the price of that security is likely to decrease in the near future.
Signal Price
The signal price is the high of the first signal bar + $0.01.
Swing trading
Swing trading is a style of trading that attempts to capture short to medium-term gains in a stock (or any financial instrument) over a period of a few days to several weeks.
Trending Market
A price series that continues to continually close either higher or lower (on average over a defined number of periods) is said to be trending. An upward trending market is one that may fluctuate up and down but on average tends to close periodically higher. A downward trending market ends periodically lower regardless of interim moves.
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Contents: PowerX Analyzer User Guide