Wrong calculation on 1 month (-100%? not at all!) of my signal provider account). - page 2
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Well in *their* defense.
This is a recent change in calculation on the MQL5 site. Before it was the same here as on the *other* website, where all stats are based on the TWR which does not include deposits/witgdrawals.
MQ5 seems to be now based on absolute gain, which is far more realistic. But paints a less pretty picture.
MQ5 seems to be now based on absolute gain, which is far more realistic. But paints a less pretty picture.
There was no change to the calculation and deposits/withdrawals are still not included.
It is just that the OP withdrew an amount so high and lowered the balance so much below the deposit line that the account went well below the recovery point of decent growth. At the time, he had a balance of 6744.79 and withdrew 6691.90 leaving only 52.89 in an account (that started off with a initial deposit of 5000), yet continued to trade with very large position sizes having a great deposit loads. How on earth did he think his account would recover from so a low balance and high loads?
He soon tried to correct it the next month and deposited a large sum back into the account, but the damaged had already been done! Even for a normal private account, such a large withdrawal, would spell a huge impact on one's profitability, as it would drown the account with high deposit load, possible unrecoverable draw-down and making it very difficult for it to return to normal expect growth rates.
If the OP wants to do that sort of thing on a Signal account without doing the respective research and being aware of the consequences (including the position sizing impact it has on his subscribers), then he has no business selling his signal and should not complain about it afterwards. It was his own fault and should take responsibility for it!
EDIT: Luckily he has no subscribers on his signal, or else he could of easily have wiped their accounts with that stunt!
That is how it is calculate on this site as well, but we are not discussing monthly growth, but instead overall growth which is based off the initial deposited balance.
EDIT: In the case of the OP, the month in question which reports -100% Growth for August 2017, is correct due the reasons I have already described. He withdrawal was much too great, even withdrawing the profits of the month in question.
That is how it is calculate on this site as well, but we are not discussing monthly growth, but instead overall growth which is based off the initial deposited balance.
EDIT: In the case of the OP, the month in question which reports -100% Growth for August 2017, is correct due the reasons I have already described. He withdrawal was much too great, even withdrawing the profits of the month in question.
If you're right, how can this happen: The account drops within a month from $ 903 to $ 521, no deposit, no withdraw, and statistics say -100%. I attach a complete history of trading. Just look for July and August 2018. Please, rename it to CSV.
You don't seriously expect me to analyse 600+ lines of history and to do the math for you, do you?
However, using your own numbers, $903 - $521 is a a drop of $382, but your initial balance for your account is only $300, so you lost more than your original deposit, hence 100% drawdown.
Remember, deposits and withdrawals don't count, no matter when they took place. Even though monthly growth is taken from initial monthly balance, you can never lose more than what is calculated from your initial account balance + profits & losses.
EDIT: I took some time and imported your history into a spreadsheet and your net gains at the end of August was $-335.15 which is obviously below your opening balance, and thus a 111.7167% draw-down.
I stated, Opening Balance + Profits. The 2000USD includes profits, so a 200USD loss is only 10% loss!
EDIT: I have edited my previous post and highlighted the section for easier reference.
EDIT2: In your case, even though you made 2 more deposits in July, your Opening Balance + Profits & Loses equaled $315.78 at the end of July and $-35.15 at the end of August (111.131% loss).
Thank you for the explanation. I can understand the calculation, even though it seems strange to me. It seems to me more correct to say that a bill that dropped from $ 2,000 to $ 1,800 made a loss of 10%, no matter where the 2000USD came from. From the investor's point of view, I am interested in the absolute result and I do not care if the trader has earned the money, borrowed it before opening an account or during trading. Thank you for your time and I will end in this discussion.
Yes, obviously when you are studying your own account only for personal use, then obviously you also consider your extra deposits as useful.
But you should remember that these are signals that are available for subscription by other users and so the numbers have to be calculated so that they are not misrepresented by extra deposits or withdrawals.