Strategy turnover measures trading activity relative to the capital base.
For the Grizzly Bulls transaction-cost analysis, annual turnover is defined as:
1annual one-way traded notional / strategy capitalA turnover multiple of 10 means the strategy trades one-way notional equal to ten times its capital over the year under that convention.
Trade count and turnover are not the same thing
A strategy can place many small trades and have modest turnover. Another can trade infrequently but replace most of the portfolio each time.
That is why cost sensitivity should be tied to traded notional, not just the number of orders.
Trading slippage affects the cost per dollar traded, while family-wise error rate concerns statistical search risk rather than execution friction.
Use the Backtest Transaction Costs calculator to translate turnover and basis-point friction into annual cost drag and break-even assumptions.
Turnover definitions can differ
Some portfolio analytics use two-way purchases plus sales, average assets, or half-turnover conventions. Always preserve the stated numerator and denominator before comparing strategies.
Sources: Grizzly Bulls Backtest Transaction Costs and Investor.gov, Executing an Order.
Continue Research
Continue from the concept into the Grizzly Bulls research surface that best matches the next question. These links are research continuations, not recommendations or required steps.
Stress transaction costs
Translate one-way annual turnover and per-dollar execution friction into annual drag and break-even economics.
Explore more topics in the Financial Research Encyclopedia.