Visuals
In TradeTutor, after you input your strategy, the platform generates detailed profit and loss predictions for a given time period, allowing users to visually compare the performance of different trading approaches.
Visual Insights with Area and Line Charts: TradeTutor presents two key visualizations—area and line charts—displaying the comparative performance of your custom strategy versus a basic "Buy and Hold" approach.
Area Chart: This chart offers a shaded comparison between the total profit & loss (P&L) of your strategy and the P&L from a traditional Buy and Hold method. The overlay provides a quick snapshot of how your strategy is faring in contrast to simply holding the asset.
Blue Shaded Area: Represents the total profit and loss from your strategy, showcasing incremental improvements or dips over time.
Lighter Blue Shaded Area: Represents the Buy and Hold P&L, which helps users gauge how much more (or less) profitable their strategy is compared to a passive approach.
Area Chart
Line Chart: The line chart provides a clearer view of the trends between the two strategies over time. The comparison between the steady growth of the "Buy and Hold" approach (depicted by the green line) and the strategy's performance (in blue) helps you assess the consistency and risk-adjusted return of your approach.
Green Line: Represents the total Buy and Hold P&L, which generally trends upwards, demonstrating the long-term appreciation of the asset.
Blue Line: Shows the performance of your custom trading strategy. A flatter curve here may indicate lower volatility and more stable returns, while spikes suggest higher activity or response to market movements.
Both charts cover the same time period, giving users the ability to see how well their chosen strategy performs over time relative to a more passive investment strategy. These tools are essential for evaluating potential tweaks or validating the effectiveness of your strategy in different market conditions.
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