Hi there, 

I'm just wondering about the 'alpha' statistic that comes up in the 'overall statistics' of a backtest. Is the figure an annual average? 

What is the benchmark?

And for example, if it says alpha = 0.205 does this mean 0.205% average alpha per year? If so I am very confused because my algorithm returns over 3000% (2000-2018) compared to about 97% in the same timeperiod for the S&P500. 

Is there anywhere that explains the alpha shown in the backtest statistics?


Any help would be greatlky appreciated,