Day-of-week trading analysis tool

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The tool may be useful for gaining further insight into results of trading systems. Individual trades are sorted by the day of the week on which the position was closed out. For each day of the week, the total number of profitable and unprofitable trades is calculated, along with the “success rate” (percentage of profitable trades).

Programme code

Equilla Script "Trade Day of Week Analyse (Strategy)"

Conceptual basis

In many markets, seasonal patterns can be recognised which are often drawn out over longer periods of time. Other market patterns can be much shorter (e.g. weekly) and may potentially be detected by analysing trading results by the day of the week. There may be days of the week on which taking a position in a certain direction may be particularly profitable. On other days, trading at an overall profit may be (in statistical terms) much less likely. These patterns can vary greatly from market to market.

The day-of-week trading analysis tool helps to detect these patterns. It can be applied to any chart with an associated trading system, providing an immediate statistical evaluation in bar chart form.

Interpretation

Where the day-of-week trading analysis tool reveals significant differences in the success rate between different days of the week, one might consider only trading in a particular direction on certain unfavourable days, or even not trading at all. For each day of the week in which there was at least one trade, a vertical bar will be displayed in the bar chart with an assessment including the number of profitable trades, the number of unprofitable trades, and the success rate (i.e. the percentage of all trades which were profitable).

Parameter

  • Delta_Text - Here you can adjust the vertical position of the text within the bar chart in order to improve legibility.

This article and displayed results, created with the available presentation and analysis tools, are used solely for information and do not provide investment advice or recommendation of any kind. All rights reserved. Reproduction, edits and other unauthorized use are under civil and criminal law.