Computing Number of CTM Trades

To compute the number of Complete Trading Model (CTM) trades for a price series apply the following formulas. For the example assume the price series includes 50 prices, of which 30 are on the upside and 20 are on the downside.

Total Number of Trades

The total number of trades for the price series is computed as:

((number of prices in series)*(number of prices in series - 1))/2

Total number of trades =(50*49)/2 = 1,225

Number of Buy Upside and Sell Upside Trades

The number of buy upside and sell upside trades is computed as:

((number of upside prices)*(number upside prices - 1))/2

Number of buy upside/sell upside trades = (30*29)/2 = 435

Buy Upside and Sell Downside Trades

The number of buy upside and sell downside trades is computed as:

(number of upside prices)*(number downside prices)

Number of buy upside/sell downside trades = 30*20 = 600

Buy Downside and Sell Downside Trades

The number of buy upside and sell upside trades is computed as:

((number of downside prices)*(number downside prices - 1))/2

Number of buy downside/sell downside trades = (20*9)/2 = 190