In the past two years of using Equities Lab, I have never stopped experimenting. However, at some point along the way, after taking up a prop trading course I found a few indicators that I trust and use more than others—essentially using those variables whenever I need to analyze a strategy. This is a time-consuming process, where you have to replot every time you create a new strategy, so we built a feature that allowed you to turn this:
All with just a simple press of a button. Better yet, this ability is available to you, and you could plot those exact variables over your backtest by using the “Default Backtest” plot panel which can be found under the trading rules tab. That’s the easy part. Let’s learn how to build our very own.
Going ahead and selecting our brand new Value Factors plot panel we can almost instantly get the data we are looking for on the companies within the screen without having to plot anything new.
That’s all fine and well, as it creates a sort of instant profile for companies that cuts down on analysis time, but there’s no point in analyzing if the backtest doesn’t show promising results.
In the case of this completely random screen, it doesn’t look like it is made up of companies that fit the traditional view of what a value company is. Without having to look at any of the companies or delve into the strategy further, I know that I wouldn’t want to include this in the value section of my portfolio. So go out there, create the perfect plot panel to reflect your general analysis techniques, and take your investments to the next level.