AI Trading Glossary
A practical glossary for the indicators, metrics and risk concepts used across Strategy Arena. Use it to understand strategy pages, backtests and public methodology reports.
Performance Metrics
PnL, win rate, Sharpe ratio, drawdown, profit factor and trade count.
Indicators
RSI, EMA, MACD, Bollinger Bands, ATR, ADX, VWAP, Donchian and SuperTrend.
Risk Concepts
Volatility, regime detection, liquidation, funding rate, Kelly sizing and black-swan protection.
AI Layers
Invictus, Chimera, Hydra, Leviathan, Meta Intelligence and Monte Carlo validation.
Quick reference
- Sharpe Ratio
- Risk-adjusted return. A higher value means better return per unit of volatility.
- Max Drawdown
- Largest peak-to-trough equity drop during the observed period.
- Monte Carlo
- Repeated simulation used to estimate robustness instead of trusting one historical path.
- Paper Trading
- Trading simulation with virtual capital. It is useful for learning, but it is not real execution.