Training Course
Click HERE to download a copy of the presentation.
IQ Gauge color settings:
- Green: Average Profit Factor >= 1.30
- Light Green: Average Profit Factor >=1.15 and <=1.29
- Yellow: Average Profit Factor >=1.00 and <=1.14
- Orange: Average Profit Factor >=.85 and <=.99
- Red: Average Profit Factor <=.84
IQ Stoplight Colors:
- Green: Profit Factor >=1.15
- Yellow: Profit Factor >=1.00 and <=1.14
- Red: Profit Factor <=.99
Testing Assumptions
| Test Window | A minimum of 7 years building to a rolling 10 years from current date; updates daily. |
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Entry Time |
Open of the regular session market hours. For U.S. equities, ETFs and index futures, this is 9:30 am ET. Commodities vary by market and use the open of the pit trading session if applicable. |
| Exit | Trade was closed at the price equal to the selected target -OR- at the price equal to the selected stop size (% ATR) -OR- at the end of the regular session for the instrument (pit session for Futures) - WHICHEVER occurred first on the date of the historical trade. |
| Stop | Based on user selection. X% ATR is a percent of the 5 day ATR. |
| Target | Based on user selection. Prior Close = price of last trade of the prior session. X% ATR is an extended price target and is equal to X% of the 5 day ATR beyond the prior close price. |
| Minimum Gap Size |
A blended formula that considers the 5 day ATR and instrument value. Gaps smaller than this minimum amount in the historical data were excluded from analysis. The IQ formula to determine min gap size is: The average of (.001 X Daily Last Price) and (.05 X 5D ATR) |
| Maximum Gap Size | None |
| Commissions | Not included - varies by individual, account, brokerage, and exchange. |
| Slippage | Not included - varies by instrument, liquidity, execution technique, and brokerage. |