Singularity Algo Lab presents a simple, intuitive, and easy-to-use standalone application, the Profitability Analysis Tool for Trading Strategies. This tool is designed for traders and strategy developers who are keen on statistically validating the profitability of their trading strategies.
Leveraging statistical hypothesis testing, specifically the one-sample t-test, this tool provides a robust method for verifying whether a strategy is profitable or not. Users can input their strategy's profit factors through a CSV file, and the tool instantly delivers the analysis results, including:
Mean, Median, and Standard Deviation of profit factors.
Skewness of profit factors.
t-statistic and p-value of the one-sample t-test.
A decision on the profitability based on the p-value.
A histogram visualizing the distribution of profit factors.
The Profitability Analysis Tool also offers customizable null hypothesis and critical values settings for more advanced users. It handles data cleaning by intelligently processing 'Infinity' and 'NaN' values to ensure a seamless experience.
Disclaimer: This tool is meant to aid in trading strategy development and does not guarantee profitability. Trading involves risk and it's recommended to consult with a financial advisor before making any trading decisions.