Backtesting Arena

Backtesting Arena

Similarity Distance

Similarity· DE: Ähnlichkeits-Distanz

How far a past day's market fingerprint sits from today's in the 9-dimensional cycle-indicator space — the smaller the distance, the stronger the analogue. Surfaced as similarity_pct = (1 − distance/100)·100.

Calculation
weighted Euclidean distance sqrt(Σ w_i · (today_i − hist_i)²) over the 9 indicator scores, with w_i the market-pulse cycle weights (Σw=1 ⇒ distance range 0..100).
Unit & source
distance_0_100 · tradingstrategies.work Historical-Analogue / Similarity Engine methodology

Related terms

Definitions are for research and education. Metrics describe market conditions — not financial advice or a buy/sell signal.