AlgoTest heatmaps make it easier for you to understand a clear picture of your trading performance. These heatmaps visually represent data like time, performance metrics, and win rates. Think of them as a map highlighting where your strategies work best and where they stumble. For example, a heatmap might reveal that trades during certain hours of the day consistently yield higher profits.
We are taking three heatmaps today. Let’s understand what we can learn from them.
1. Finnifty Short Straddle Heatmap
- Time-Based Insights:
- 09:45 shows the highest profitability with a total of ₹9204, highlighting it as a strong trading window.
- 11:15 and 11:45 exhibit consistent yet lower returns (₹1569 and ₹1670, respectively), suggesting moderate opportunities.
- 13:15 onwards sees a steep decline into negative returns, indicating high risk during this period.
- Stop-Loss Impact:some text
- Lower SL levels (e.g., 10 or 20) tend to show higher losses during underperforming timeframes, while higher SLs (50-80) stabilize the returns.
2. Nifty Short Straddle Heatmap (Daily Analysis)
- Date-Based Performance:
- 06 Dec outperformed significantly with a total of ₹14,295, while 13 Dec marked a catastrophic day, incurring losses of ₹-31,123.
- Consistent performance can be observed on 11 Dec (₹8360) and 12 Dec (₹5916).
- Negative days such as 13 Dec and 10 Dec emphasize the volatility in specific market conditions.
- Stop-Loss Observations:
- SL values between 50 and 70 provide a balance, minimizing extreme losses while securing modest returns.
- Extreme SLs (10, 20) lead to higher losses, as seen on 13 Dec, suggesting these settings are less optimal.
3. Nifty Short Straddle Heatmap (Time-Based)
- Time-Slot Observations:
- 09:45 remains the most profitable time slot with a total of ₹5200, consistent across both assets.
- The period between 12:15 and 13:45 sees reduced activity and profitability, with sporadic gains like ₹4733 at 13:15.
- Post-lunch sessions (14:15 onward) exhibit stable but moderate performance.
- SL-Level Effects:
- Higher SL levels (70, 80) generate consistent profits, especially during optimal time windows like 10:15 and 09:45.
- Lower SLs (10-20) face higher losses, amplifying the need for careful SL selection.
4. Banknifty Short Straddle Heatmap (Time-Based)
Date-Based Insights:
- 10 Dec 24 shows the highest profitability with a total of ₹8450, marking it as the most successful trading day.
- 06 Dec 24 and 18 Dec 24 also performed well, generating ₹6484 and ₹7954, respectively.
- 13 Dec 24 is the worst-performing day with a significant loss of ₹-26,797, indicating high risk on this date.
SL-Level Effects:
- Lower SLs (10-20) consistently show higher volatility and losses across dates.
- Mid-range SLs (50-70) offer more stable and profitable returns on most days.
- High SLs (80-100) demonstrate minimal variation, indicating reduced risk but capped profits.
You can also check heatmaps for MidCapNifty, Nifty, BankNifty, and FinNifty across different dimensions to better understand market trends.
