Alarm Bells after training

I just upgraded to Zorro S and ran my first backtests. I'm sure I'll have plenty more questions.. But firstly,

What does it mean when an alarm goes off after the training period?

Results of backtest:
Annual return 543%
Profit factor 1.12 (PRR 0.98)

I'm not sure I understand, how can it be 543% but only 1.12 profit factor?

The alarm is just to inform you that it has finished its job.

In the manual you find an explanation of all the performance metrics, https://zorro-project.com/manual/en/performance.htm

Ok, thank you. I'm still not understanding the metrics. If an annual return is 500%, wouldn't that be a profit factor of 5?

I'm also not understanding what the Capital variable does. According to the docs is reinvests the profits, but then I get a different metric.

I want to give a starting input of capital like 100$, and a leverage like 3x and see how it performs. What steps do I need to accomplish this? How can I see the result in terms of dollars ?

Wonderful software by the way. I was trying to do all this in python before I found this forum. Sadly I don't know all the finance terms. I'm ok with coding though so I may annoy you slightly less.

Thank you!

The annual return also takes your leverage into account.

The Capital is an optional var to define your starting capital in a test run, so that should be 100000 in your case.

You can adjust your leverage in your account list, see https://zorro-project.com/manual/en/account.htm

I see that you post a lot of questions, but I would suggest that you study the manual first. Most things can be found over there.

Hi Grant,

I am reading the manual, but that doesn't mean I understand it!

Why would it be 100000 ?

Here's why.



IMO, the best way to understand Zorro is to start with some simple examples (i.e. reading & running them), like those in the 'strategy coding' section in the manual.
It simply takes time, effort & patience.