1. What is Net Sensitivity in Forex?

Definition: Net Sensitivity measures the weighted true positive rate of a trading strategy or signal system in forex markets.

Purpose: It helps traders evaluate the effectiveness of their trading signals while accounting for the importance of different market conditions.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( TP \) — True positives (correct signals)
• \( FN \) — False negatives (missed opportunities)
• \( \text{Weight} \) — Importance factor (typically 1.0)

Explanation: The ratio TP/(TP+FN) gives the sensitivity (true positive rate), which is then weighted by importance.

3. Importance of Net Sensitivity in Forex

Details: A higher net sensitivity indicates better detection of profitable trading opportunities. Values range from 0 (worst) to the weight value (best).

4. Using the Calculator

Tips: Enter the count of true positives, false negatives, and weight factor (default 1.0). TP and FN must be ≥ 0, and (TP + FN) must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: What's a good net sensitivity value?
A: For weight=1, values >0.7 are good, >0.8 are excellent, and >0.9 are exceptional.

Q2: When should I adjust the weight factor?
A: Increase weight for critical market conditions, decrease for less important scenarios.

Q3: How do I count true positives and false negatives?
A: TP = profitable trades taken, FN = profitable trades missed.

Q4: Does this account for risk/reward ratios?
A: No, this measures signal accuracy only. Combine with other metrics for full evaluation.

Q5: Can I use this for other financial markets?
A: Yes, the formula works for stocks, crypto, and other trading instruments.