Assume a strategy starting on 1/1/2018 and finishing on 1/1/2022. If the total number of trades is 40, what would the 'Average number of bars in trade:' metric show, assuming you'r... Assume a strategy starting on 1/1/2018 and finishing on 1/1/2022. If the total number of trades is 40, what would the 'Average number of bars in trade:' metric show, assuming you're using the 1D chart? Read more

Steps to Solve

1. Determine the time frame
   The strategy starts on 1/1/2018 and ends on 1/1/2022. Calculate the total number of days between these two dates.
   From 1/1/2018 to 1/1/2022 is exactly 4 years.
   Since 2020 is a leap year, the total days can be calculated as:
   $$ 365 \times 3 + 366 = 1095 + 366 = 1461 \text{ days} $$

2. Calculate the average number of trades per day
   Given that the total number of trades is 40, we divide the total trades by the total days to find the average daily trades.
   $$ \text{Average trades per day} = \frac{\text{Total Trades}}{\text{Total Days}} = \frac{40}{1461} \approx 0.0273 \text{ trades per day} $$

3. Determine the average number of bars based on trading
   Assuming that one trade may occur over multiple bars, we need an estimate for the average number of bars per trade. If we estimate that there are about 2 bars for each trade, then we can calculate the total number of trading bars.
   $$ \text{Average number of bars} = \text{Average trades per day} \times \text{Number of bars per trade} \times \text{Total Days} $$
   Using 2 bars per trade:
   $$ \text{Average number of bars} = 0.0273 \times 2 \times 1461 \approx 80 \text{ bars} $$

4. Select the closest option
   The calculated average (approximately 80) is closest to the values provided in the options. Since some assumptions may lead to a slightly lower number, we can choose the closest available answer.