The Trade Busters
54 - The Theta Engine Matrix
Mar 18, 2022
Discover the Theta Engine Matrix trading strategy and how to adjust parameters. Explore risk-reward analysis and metrics in trading strategies. Learn about the impact of filters on performance and the importance of consistency. Get insights on the challenges of running the TE omnibus engine and explore the trading page's features.
23:40
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Quick takeaways
- The Theta Engine Matrix is a research study on a trading strategy that includes parameters like stop loss, profit take, delta, and DTE, and can be used to analyze permutations of the strategy.
- Applying filters such as market trend and moving average crossovers to the trading strategy can potentially improve risk-adjusted returns and reduce drawdowns, but caution should be exercised due to the possibility of curve fitting and reliance on backward-looking data.
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Overview of the Theta Engine Matrix
The podcast episode discusses the Theta Engine Matrix, which is a research study on a trading strategy. The matrix includes various parameters like stop loss, profit take, delta, and DTE. The host provides a link to access the Theta Engine Matrix on the TradeBusters trading page. The matrix consists of different backtest results and metrics, such as PCR, max drawdown, average days in trade, win rate, average win size, and average loss size. The host explains the significance of these metrics and how they can be used to analyze different permutations of the trading strategy.
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