The Building Block — The SL Distance
Everything is measured in points, and every evaluated trading signal uses the stop loss distance as its reference value.
This is simply the number of points between entry price and stop loss level (for example 500 points on XAUUSD).
This value provides the common reference for the risk/reward and Net Points calculations.
Note — Points vs Pips
MetaTrader 5 calculates everything natively in raw points — the smallest price increment for a given symbol. For example, a 50-pip stop loss on EURUSD or a $5.00 move on XAUUSD is equal to 500 points. All Net Points figures shown in the statistics panel and throughout this documentation are expressed in points, not pips.
Important — Understanding Net Points
All Net Points statistics and performance metrics described in this documentation are calculated from historical market data using the configured strategy rules and the EdgityCore evaluation model. They represent the historical points-based performance of detected trading signals and are intended solely for quantitative strategy analysis. They do not represent executed broker trades, actual trading account performance, or monetary profit or loss. Net Points are independent of lot size, account balance, commissions, swaps, spread, slippage, and other live execution factors.
What Each Outcome Adds or Subtracts
After each evaluated trading signal reaches its final outcome, the recorded result determines how many points are added to or subtracted from the running Net Points total.
SL Hit — Full Loss
If the stop loss is hit before the RML is reached, the Net Points calculation subtracts the entire stop loss distance from the running Net Points total.
Example
SL = 500 pts → Net Points = −500
RML Hit — Breakeven or Better
The Risk Mitigation Level (RML) is placed at the configured multiple of the stop loss distance in your favour. When price reaches the RML, the stop loss steps to the entry price — from this point the evaluated signal has zero remaining downside in the evaluation model.
If the RML is hit and price subsequently reverses back to entry, the evaluation records a breakeven result: zero points are added or subtracted. If price continues beyond the RML, the signal can advance to the configured TP levels and the running Net Points total reflects the higher outcome reached.
In the evaluation model, an RML hit that subsequently returns to entry is recorded as 0 points. It is classified as a potential win because the original stop loss was avoided, but it contributes nothing to the Net Points total. This is the mechanism behind the potential win rate increase: signals that would otherwise have recorded a full loss can instead record a 0-point breakeven outcome after reaching the RML.
Example
RML hit, price reverses to entry, SL = 500 pts → Net Points = 0 (breakeven, classified as potential win)
TP Hit — Potential Points Added
Each take-profit level is based on its configured multiple of the stop loss distance. The Net Points calculation adds the distance corresponding to the recorded TP outcome.
Examples
TP2 hit, SL = 500 pts, TP2R = 1.0 → Net Points = +500
TP3 hit, SL = 500 pts, TP3R = 1.5 → Net Points = +750
Trail Exit — Dynamic Potential Points
Trailing-stop exits are calculated differently. Because the trailing stop moves as the signal progresses, the Net Points calculation measures the locked-in distance between entry and the final trailing-stop exit.
Example
Trailing stop exits 620 pts above entry → Net Points = +620
Net Points = Running Total of All Trades
After each evaluated trading signal reaches its final outcome, its point result is added to the running Net Points total.
This value is displayed inside the statistics panel as Net Points.
Net Points = Total Potential Points − Total Points Lost
Practical Example
XAUUSD example with:
- SL = 500 pts
- RML = 0.5 × SL = 250 pts
- TP2R = 1.0
- TP3R = 1.5
| Signal | Result | Points | Running Total |
|---|---|---|---|
| 1 | SL hit (RML never reached) | −500 | −500 |
| 2 | RML hit, price reverses to entry | 0 (breakeven) | −500 |
| 3 | TP3 hit | +750 | +250 |
| 4 | SL hit (RML never reached) | −500 | −250 |
| 5 | Trail exit at +620 pts | +620 | +370 |
| Net Points | +370 | +370 | |
Signal 2 — the RML breakeven — contributes 0 points to the total but is counted as a potential win in the potential win rate calculation. This is why the RML can increase the potential win rate without adding artificial profit points: a signal that reaches the RML and subsequently returns to entry contributes zero points instead of recording a full stop-loss outcome.
What Net Points Does Not Account For
Net Points is a raw points-based performance measurement produced by the EdgityCore evaluation model.
It does not account for:
- Lot size
- Partial closes at TP levels
- Currency conversion
- Broker commissions or swaps
- Spread and slippage
- Execution latency or other live execution conditions
Its purpose is to provide a consistent points-based measurement of strategy performance and risk/reward efficiency over the selected historical period, independently of account size or position size.
Because Net Points is intentionally independent of lot size and monetary account variables, it should not be interpreted directly as a profit or loss amount in account currency.
© 2026 Marc Quentier. All Rights Reserved. This document is part of the EdgityCore Suite. No part of this publication may be reproduced, distributed or transmitted in any form or by any means without the prior written permission of the copyright holder, except as permitted by applicable copyright law.
