When DD Does Not Match: PNG Custom Calibration Guide + INPUT Guide

Check the cause first, calibrate only when necessary, and use this article as a reference for PNG's main operating inputs.

You set DD Target to 3%, run a backtest, and the reported drawdown is different.

What should you change?

DD Target uses historical drawdown as a sizing reference. The resulting DD can still change with the test period, broker specifications, trading costs, minimum-lot restrictions, balance changes, execution conditions, and portfolio composition.

Custom calibration allows you to replace the Built-in reference with one measured under your own broker conditions.

Before using it, first determine why the result differs.

1. Before Switching to Custom, Check These First

If an OHLC or Fast result looks unusual, confirm the same configuration using:

Every tick based on real ticks + Normal

before deciding that Custom calibration is required.

Also keep broker time, spread settings, and protection settings consistent when comparing results.

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2. Minimum-Lot and Small-Account Limits

If the broker's minimum lot is already forcing a larger position size than the requested risk, Custom calibration cannot reduce that position below the broker's executable minimum.

This is more noticeable on smaller accounts because PNG operates multiple strategies with different internal sizing weights.

For example, lowering DD Target may mathematically request a smaller order, but if the calculated size falls below the broker's minimum lot, the actual executable size may still be the minimum lot.

In that situation, consider:

• reducing the number of enabled markets,
• lowering overall portfolio exposure,
• using FIXED LOT to inspect a simpler position size,
• or using a larger account where PNG can express the intended relative sizing more accurately.

Fixed Lot gives direct control over the requested lot size.

If minimum-lot restrictions are the problem, changing the DD reference is not the solution. 

fixed lot size is generally suitable for those managing small accounts of less than $2,000.

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3. When Should You Use Custom?

Built-in is the simplest option when it produces a reasonable risk profile under your broker conditions.

Custom is useful when:

• you want a reference measured directly using your broker's specifications,
• trading costs differ materially from the Built-in reference environment,
• Real Tick + Normal produces a significantly different risk profile,
• or you want a controlled broker-specific sizing baseline.

The basic relationship is:

Reference sizing → measured historical Balance DD → DD Target → scaled trading size

Custom changes the historical sizing reference.

It does not force future losses to stop at the DD Target.

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4. Reference Lot vs. USDJPY Reference Risk

Most PNG markets use:

Reference Lot

during Custom reference testing.

USDJPY uses:

Reference Risk per Trade ($)

because its sizing also accounts for stop-loss distance.

If two trades use the same lot size but different stop distances, the expected loss at the stop is different. A risk-based reference therefore provides a more consistent baseline for USDJPY.

Both values are still base reference values.

PNG applies strategy-specific weighting internally.

For example:

Reference Risk per Trade = $100

does not mean every USDJPY trade risks exactly $100.

Likewise, a Reference Lot does not mean every strategy trades exactly the entered lot.

If you use the standard Built-in DD Reference, these Custom values do not need to be measured manually.

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5. Core Inputs for Custom Calibration

The most important rule is:

The reference sizing value and the measured Balance DD form a matched pair.

If the Reference Lot or Reference Risk changes, measure the DD again.

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6. Step 1 — Run the Reference Backtest

Open the MT5 Strategy Tester and select the exact broker symbol being calibrated.

Use H1 as the tester chart timeframe.

Inside PNG:

• enable only the market being calibrated,
• disable the other markets,
• keep the standard strategy group unchanged,
• and turn optimization OFF.

Use:

Keep randomization OFF during reference measurement so that the calibration remains reproducible.

Then enter:

Reference Risk per Trade ($) for USDJPY

or:

Reference Lot for the other markets.

The reference value must be large enough for the complete strategy group to satisfy the broker's minimum-lot requirements.

If initialization fails because the value is too small, check the PNG log and increase the reference according to the guidance.

Choose a test period containing sufficient trades and meaningful losing periods. Avoid creating the reference from only a short or unusually favorable market phase.

If the Reference Value Changes, Measure Again

If you first test with:

Reference Lot = 0.10

and later change it to:

Reference Lot = 0.20

the DD measured at 0.10 is no longer the correct reference.

Run the Reference Backtest again.

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7. Step 2 — Record the Balance DD (custom: backtest balance DD)

After the test finishes, open the MT5 report and find:

Balance Drawdown Maximal

For example:

Balance Drawdown Maximal: 800($) (0.8%)

The value used for Custom calibration is:

800

Custom reference itself uses Balance DD.

Save the Reference Pair

An illustrative USDJPY reference pair could be:

These numbers belong together:

$100 reference risk ↔ $800 measured Balance DD

This is only an example.

It is not a recommended Reference Risk value.

Use the values measured in your own valid test.

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8. Step 3 — Apply Custom and Revalidate

Enter the measured DD into:

Custom: Backtest Balance DD ($)

Then:

1. Change Sizing Mode → DD TARGET
2. Keep DD Reference → Custom Backtest
3. Keep the same Reference Lot or Reference Risk used during measurement
4. Enter the DD Target (%) you want to evaluate

Using the illustrative example:

• Reference Risk per Trade = $100
• Custom Balance DD = $800

These remain the calibration pair when DD Target changes.

You do not change the $100 Reference Risk each time you change DD Target.

Reference Backtest is for measurement only.

Return to DD TARGET or FIXED LOT before operating PNG on a live or demo account.

Revalidate With Real Ticks + Normal

Run the configuration again using:

DD TARGET + Custom Backtest
Every tick based on real ticks + Normal

Review:

• Balance DD,
• Equity DD,
• executed lot sizes,
• minimum-lot effects,
• free margin,
• trading errors,
• trade frequency,
• and losing periods.

First test the same reference period.

Then test other periods.

This answers two separate questions:

1. Was the calibration applied correctly?
2. Does the resulting sizing remain reasonable under different market conditions?

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9. Why DD May Still Differ From DD Target

Even after calibration:

DD Target = 3%

does not guarantee exactly:

3.00% DD

The result can still be affected by:

• lot increments,
• minimum lots,
• changing account balance,
• trading costs,
• execution conditions,
• overlapping positions,
• and different historical loss sequences.

If:

Sizing Balance = 0

PNG uses the current account Balance, so position size can also change as the account grows or declines.

Custom establishes a measured historical sizing relationship.

It does not create a guaranteed future loss ceiling.

DD Target is a sizing target, not a hard loss limit.

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10. Final Portfolio Validation

After the individual markets have been calibrated and reviewed, enable the markets you actually intend to trade.

Run the complete configuration using:

Real Ticks + Normal

Now apply the operating settings you intend to use, including:

• Entry / Exit Time Randomization,
• SL Randomization,
• spread filtering,
• daily protection,
• Close Before Weekend,
• and your final DD Targets.

Then review:

• combined Balance DD,
• combined Equity DD,
• overlapping losing periods,
• simultaneous exposure,
• free margin,
• and periods of concentrated portfolio stress.

Do not estimate full-account DD by simply adding individual DD Targets.

For example:

USDJPY DD Target = 3%
USTEC DD Target = 3%
US500 DD Target = 3%

does not automatically mean:

Portfolio DD = 9%

The result depends on when the markets gain and lose relative to one another.

If Built-in already produces a suitable risk profile, there is no requirement to use Custom.

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Appendix — PNG Input Reference

The Custom-specific inputs were explained above.

The following table summarizes the remaining operating inputs so this article can also serve as a general PNG input reference.

Important Notes About These Inputs

Broker time can affect time-based trading windows. Confirm the actual winter GMT offset and DST schedule used by your broker.

Spread filtering can exclude entries. Keep it consistent between Reference Backtest and Custom validation when comparing results.

Daily protection and Close Before Weekend can change the measured DD. A reference measured with those protections active includes their intervention.

In general:

Any setting that materially changes entries, exits, or position sizing can change the measured reference DD.

If such a setting is changed materially after calibration, consider measuring the reference again.

The additional News Protection Mode is not fully simulated in ordinary backtests, so verify its behavior separately in demo or forward operation if you plan to use it.

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Built-in or Custom?

Built-in remains the simpler option when it already produces a suitable risk profile under your broker conditions.

Custom is designed for users who want the historical sizing reference to come from a controlled measurement in their own environment.

Its purpose is not to make the backtest look better.

It is to answer a specific question:

What historical Balance DD does this reference position size produce under the environment I actually intend to use?

Once that relationship is measured, PNG can use it as the basis for DD Target sizing.

The final decision should still consider:

• Equity DD,
• minimum-lot restrictions,
• margin,
• trading costs,
• and the risk of the complete portfolio.

With this, the core PNG setup process is complete: understand the system, validate it under your own broker conditions, and calibrate risk only when necessary.