Glossary of Terms

Your guide to trading and AI terminology

EA (Expert Advisor): An EA (Expert Advisor) is an automated trading system used in MetaTrader platforms to execute trades and manage orders based on predefined rules or strategies.

Profit Factor: The profit factor is a performance metric that calculates the ratio of gross profits to gross losses, indicating the efficiency of a trading strategy.

Backtesting: Backtesting involves evaluating a trading strategy using historical market data to determine its potential profitability before applying it in live markets.

Drawdown: Drawdown refers to the reduction in equity from a peak to a trough in a trading account, used to measure the risk of a trading strategy.

Alpha: Alpha is a measure of a trading strategy's ability to outperform the market or benchmark index, representing excess returns.