---
title: "Trading encyclopedia"
url: https://quantmonitor.net/category/trading-encyclopedia/
type: term
taxonomy: category
taxonomy_label: "Category"
count: 8
lang: en
---

# Trading encyclopedia

## Latest entries

- [System Quality Number (SQN): Formula and What’s a Good Value](https://quantmonitor.net/system-quality-number-sqn/) — What is a good System Quality Number (SQN)? A good System Quality Number (SQN) is 2.5 or higher, measured over at least 100 trades. Below about 1.6 the edge is weak or hard to tell apart from random;...
- [Setting Point Value, Tick Pip Step/Size for CFDs: A Step-by-Step Guide](https://quantmonitor.net/setting-point-value-tick-pip-step-size-for-cfds/) — When it comes to trading Contract for Difference (CFD), understanding the intricacies of the market is essential for success. One of the most important aspects of CFD trading is understanding the poin...
- [Swap in MetaTrader 4 and 5: What It Is and How It’s Calculated](https://quantmonitor.net/understanding-managing-swap-forex-trading-metatrader-4-5/) — What swap (rollover) means in MetaTrader 4 and 5, how it's calculated, why Wednesday is triple swap, and how to view swap long and short for any symbol.
- [CAGR: Understanding the Concept and Its Practical Applications](https://quantmonitor.net/understanding-cagr-concept-practical-applications/) — What is CAGR? CAGR (compound annual growth rate) is the smoothed, annualized rate of return of an investment or trading strategy over a period — the single yearly growth rate that would take it from i...
- [The Sharpe Ratio: Understanding and Using it for quant trading strategies](https://quantmonitor.net/sharpe-ratio-understanding-using-investing-decisions/) — What is a good Sharpe ratio for a trading strategy? A good Sharpe ratio for a trading strategy is generally above 1.0 — above 2.0 is very good and above 3.0 is excellent. Because live trading almost a...
- [Z-score](https://quantmonitor.net/z-score/) — What is a Z-score in trading? In systematic trading, the Z-score is a runs test that tells you whether a strategy's sequence of wins and losses is genuinely random or streaky. A Z-score beyond ±1.96 m...
- [Profit factor](https://quantmonitor.net/profit-factor/) — What is a good profit factor for a trading strategy? A good profit factor for a trading strategy is roughly 1.5–2.0. Below 1.0 the strategy loses money; 1.5–2.0 is a robust, tradeable edge; and a prof...
- [R expectancy](https://quantmonitor.net/r-expectancy/) — What is R-expectancy in trading? R-expectancy is the average profit or loss a trading strategy makes per trade, measured in units of risk (R) , where 1R is the amount you risk from entry to your stop-...