Question 1

How Returns Are Calculated

Accepted Answer

1. Trades are grouped by their **exit month** (when the trade closed) 2. Monthly P&L = sum of all trade P&L within that month 3. Monthly Return % = Monthly P&L / Initial Deposit × 100 4. Average Monthly Return = sum of all monthly returns / number of months 5. Average Yearly Return = Average Monthly × 12 (annualized)

Question 2

Reading the Chart

Accepted Answer

The bar chart shows: - **Green bars** — months with positive returns - **Red bars** — months with negative returns - **Bar height** — magnitude of return (%) - **Text below** — average monthly return and annualized return

Question 3

Consistent Returns

Accepted Answer

Most bars roughly the same height, mostly green → reliable, repeatable strategy.

Question 4

Seasonal Bias

Accepted Answer

Consistently good/bad in certain months → strategy may depend on seasonal patterns (e.g., crypto tends to be bullish in Q4 historically).

Question 5

Clustered Returns

Accepted Answer

All profit concentrated in 1-2 months → unreliable. Strategy may depend on a specific market event rather than a repeatable edge.

Question 6

Increasing Volatility

Accepted Answer

Bars getting taller over time (both green and red) → position sizing may be compounding aggressively.

Question 7

Key Metrics

Accepted Answer

| Metric | Description | |--------|-------------| | **Avg Monthly Return** | Average percentage return per month | | **Avg Yearly Return** | Annualized return (monthly × 12) | | **Profitable Months** | Count and percentage of positive months | | **Best Month** | Month with highest return | | **Worst Month** | Month with largest loss |

Question 8

Consistency Score

Accepted Answer

The percentage of profitable months feeds into the StratBase Score calculation: - **80%+ profitable months** — excellent consistency - **60-80%** — good - **40-60%** — average (mixed results) - **Below 40%** — strategy loses more often than it wins on a monthly basis > **Tip:** A strategy with 60% monthly win rate but 2:1 average win/loss ratio can still be very profitable. Don't judge solely by the count of green vs red months — the magnitude matters.

Question 9

FAQ

Accepted Answer

**Q: Why do some months show zero?** A: If no trades closed in a particular month, that month has zero return. The strategy may have had open positions but no exits. **Q: Is annualized return just monthly × 12?** A: For display purposes, yes. For periods less than 12 months, the annualized figure is an extrapolation, not a guaranteed projection.

Question 10