📘 Terminology Glossary

🧱 Strategy Structure

• Leg: A single position within a multi-leg strategy (e.g., short put, long call).
• Leg ID – Unique identifier for tracking a specific leg in results or analytics.
• Underlying ID – ID of the underlying instrument for the option (e.g., IND.ES).
• Type – Instrument type: Call, Put, Future, or Stock.
• Weight Type – Sizing Method: Notional, Lots, etc. 
• Weight – Value used for sizing the leg based on the weight type.
• Min DTE – Minimum days to expiry; triggers roll when breached (if enabled).
• Nearest – Which contract to trade (1st, 2nd, 3rd in the chain).
• Strike Type – How the strike is selected: by Delta, Monneyness, etc.
• Strike Value – Numeric input used with the selected strike type.
• Period – Period for options/futures (e.g., Monthly, Quarterly, Seasonal).
• Period Contract – Specific contract within the selected period (e.g., March / Q3).

⚙️ Backtest Configuration

• Start Equity: Initial capital allocated to the backtest.
  • Equity Type:
    • Static: Trades use the same notional amount over time.
    • Compounding: Position sizes scale in proportion to account growth.
• Hedge Type: Strategy applied to manage directional risk (e.g., delta hedging).

📡 Signals

• Signal: A condition that triggers entry or exit (e.g., RSI crossover, moving average).
• Source: The data feed used for signal logic (e.g., front future, spot price, custom index).

📈 Outputs & Metrics

• Equity Curve: Cumulative value of the portfolio over time.
• CAGR: Compound Annual Growth Rate; measures average annual return.
• Max Drawdown: The most significant peak-to-trough decline in portfolio value.
• MAR: Managed Account Ratio = CAGR / Max Drawdown
• Sharpe Ratio: Risk-adjusted return metric.
• TradeCnt: Number of trades executed in the backtest.
• AvgTradePNL: Average profit or loss per trade.
• PercProf: Percentage of Profitable Trades
• ProfFac: Ratio of gross profits to gross losses.

📊 Advanced Analytics

• P&L Attribution: Breakdown of profit/loss by factor (e.g., Greeks, Legs, etc).
• VaR (Value-at-Risk): Estimated worst-case loss over a specified time and confidence level.
• Exposure: Capital at risk or allocated to open positions at any time.
• Holding Period: Average number of days a trade remains open.