Analysis Configuration

The Analysis Configuration section defines the tolerances used to match backtest trades with real-time alerts. These settings determine how strict or lenient the matching algorithm is when pairing signals.

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Overview

Perfect timestamp and price matches are rare in real-world trading. Network latency, bar timing differences, and market volatility all introduce small variations. The configuration settings let you define acceptable thresholds for these differences.

The goal: Match signals that represent the same trading intent, even if they differ slightly in timing or price.

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Configuration Parameters

Time Tolerance (Forward)

Max Time Difference — The maximum number of minutes an alert can occur after a backtest signal and still be considered a match.

Setting	Default	Range
Max Time Diff	5 minutes	1-60 minutes

How it works:

• A backtest signal at 09:30:00 with 5 min tolerance matches alerts from 09:30:00 to 09:35:00
• Alerts before the backtest signal are evaluated separately (see Backward Tolerance)

Recommendations by strategy type:

Strategy Type	Recommended	Reasoning
Scalping (1-5 min)	1-2 minutes	Precision is critical
Day Trading (15-60 min)	5 minutes	Small delays acceptable
Swing Trading (4H+)	15-30 minutes	Bar timing varies more
Position Trading (Daily)	30-60 minutes	Daily bar close times vary

Time Tolerance (Backward)

Backward Time Tolerance — How many minutes before the backtest signal an alert can occur and still match.

Setting	Default	Range
Backward Tolerance	1 minute	0-30 minutes

Why this matters:

• Alerts can sometimes fire slightly before the bar closes
• calc_on_every_tick=true strategies may alert before final bar confirmation
• Network routing can occasionally cause out-of-order delivery

Use cases:

Setting	When to Use
0 minutes	Strict matching, alerts should never precede backtest
1 minute	Default, allows for minor timing variations
5+ minutes	For strategies with known early-alert behavior

Price Tolerance

Max Price Difference — The maximum percentage difference between backtest price and alert price for a valid match.

Setting	Default	Range
Max Price Diff	2%	0-10%

How it works:

• Calculated as: |backtest_price - alert_price| / backtest_price × 100
• A 2% tolerance on a $100 stock allows ±$2 price difference

Recommendations by asset type:

Asset Type	Recommended	Reasoning
Large Cap Stocks	0.5-1%	Low volatility, tight spreads
Small Cap Stocks	2-3%	Higher volatility
Crypto	3-5%	Extreme volatility possible
Forex	0.2-0.5%	Very tight spreads
Options	5-10%	Wide bid-ask spreads

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Understanding the Matching Algorithm

The analysis engine uses these tolerances in a multi-step process:

1. Time Window Filtering

   For each backtest trade, identify all alerts within the time window:

   (backtest_time - backward_tolerance) to (backtest_time + forward_tolerance)

2. Price Threshold Check

   From the time-filtered alerts, keep only those within the price tolerance:

   |alert_price - backtest_price| ≤ (backtest_price × price_tolerance%)

3. Best Match Selection

   If multiple alerts qualify, select the one with:

   • Smallest time difference (primary)
   • Smallest price difference (tiebreaker)

4. Classification

   Each backtest trade is classified as:

   • Matched — Found a qualifying alert
   • Missed — No alert within tolerances

   Each alert is classified as:

   • Matched — Paired with a backtest trade
   • False Alert — No corresponding backtest trade

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Impact Visualization

Understanding how tolerance changes affect your results:

Tightening Tolerances (Lower Values)

Effect	Result
⬇️ Time tolerance	More “missed alerts” if timing varies
⬇️ Price tolerance	More “missed alerts” if prices diverge
Overall	Higher precision, but may miss valid matches

Loosening Tolerances (Higher Values)

Effect	Result
⬆️ Time tolerance	May incorrectly match unrelated signals
⬆️ Price tolerance	May match signals from different events
Overall	Higher match rate, but potential false positives

Tip

Start with defaults, then tune. Run your first analysis with default settings. If your match rate seems too low, check specific mismatches before loosening tolerances. Often, the issue is timezone alignment, not tolerance settings.

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Strategy-Specific Guidance

For calc_on_every_tick=true Strategies

These strategies recalculate on every price update, which can cause:

• Alerts firing before bar close
• Multiple alerts per bar (only one survives in backtest)

Recommended settings:

• Backward tolerance: 3-5 minutes
• Time tolerance: 5-10 minutes
• Consider enabling “Ignore calc_on_every_tick” filter if available

For Market Order Strategies

Strategies using market orders execute immediately, so:

• Price slippage is expected
• Time should be precise

Recommended settings:

• Time tolerance: 2-5 minutes
• Price tolerance: 2-3%

For Limit Order Strategies

Limit orders may fill at different times/prices than the signal:

• Price should match the limit price
• Time may vary significantly

Recommended settings:

• Time tolerance: 15-30 minutes
• Price tolerance: 0.5-1%

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Completion Criteria

The Analysis Configuration step is marked complete (✓) when:

• Time tolerance is set (any value > 0)
• Price tolerance is set (any value ≥ 0)
• All previous steps are complete

Once all four workflow steps show checkmarks, the “Ready to Analyze” card appears.

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Best Practices

1. Document your settings — Note which tolerances work for each strategy
2. Re-run with different settings — Compare results to find optimal values
3. Match your execution style — Align tolerances with how your strategy actually trades
4. Consider market conditions — Volatile periods may need looser settings

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Common Issues

Very Low Match Rate Despite Valid Data

Cause: Tolerances too tight for your strategy’s behavior.

Solutions:

1. Review specific mismatches in the Comparison Grid
2. Check if time differences are consistent (might be timezone issue)
3. Gradually increase tolerances and re-run

Too Many False Matches

Cause: Tolerances too loose, matching unrelated signals.

Solutions:

1. Tighten time tolerance first (most impactful)
2. Reduce price tolerance
3. Review matched pairs for accuracy

Inconsistent Match Quality

Cause: Mixed signal types with different timing characteristics.

Solutions:

1. Separate analysis for entry vs. exit signals
2. Filter to specific signal types
3. Use different tolerances for different conditions

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Related Sections

• Backtesting Upload — Previous step: import trade data
• Results Summary — Understanding your analysis output
• Troubleshooting — Full troubleshooting guide