How do you evaluate quant model configurations?

Here are some important values that will help you evaluate your model configurations:

1. CAGR: Average yearly growth rate over historical market data. This is an indicator of the historical returns you could have generated with the configuration.
2. Max drawdown: Maximum loss possible if you were to enter trades at the worst recorded price. This is an indicator of the risk involved with the configuration.
3. Hit rate: Hit rate is the number of signals that generated positive returns vs total number of signals that were generated. This tells you how successful the respective configuration has been in the past.

NOTE: Past performance is not an indicator of future returns

You can use the aforementioned values to compare your configurations’ performance against the most popular one. If you feel unsure or change your mind, you can always go back to the most popular configuration or update your current one in the future.