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Problem with Back Test

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Felice1
9
Felice1  

Good morning, I would like to address an issue that concerns them; on how it is calculated the drawdown.

When we do a BT in relationships they are described 3 Drawdown. Absolute Maximum, Relative

From the definitions that I found on the internet,

1) Absolute Drawdown is the difference between the initial deposit and the maximum loss.

2) Maximum drawdown is the maximum loss after reaching a certain profit.

3) relative drawdown indicates the maximum percentage loss than the notional principal amount.

I made a very short with BT MT4, for readability and has been done with the EA that allows you to very clearly distinguish the balance by cash,

The problem is that they do not add up accounts, according to the data shown on the graph, and the values ​​of the BT report.

Summary:

Absolute drawdown ratio of 11.12; from graph 8.47

Maximum drawdown ratio of 46.02; by chart 24,57

by ratio 0.18% relative drawdown; by chart with such discrepancies I do not know how to calculate it.

Someone can give me an explanation of these conflicting values?

Sergey Golubev
Moderator
94676
Sergey Golubev  

According to this article: What the Numbers in the Expert Testing Report Mean

Absolute drawdown is the difference between the initial deposit and the smalles value of balance within testing:
AbsoluteDrawDown = InitialDeposit - MinimalBalance

Maximal drawdown is the highest difference between one of local upper extremums of the balance graph and the following lower extremums:
MaximalDrawDown = Max of (Maximal Peak - next Minimal Peak)

What the Numbers in the Expert Testing Report Mean
What the Numbers in the Expert Testing Report Mean
  • 2006.05.05
  • MetaQuotes Software Corp.
  • www.mql5.com
Article explains how to read testing reports and to interpret the obtained results properly.
Felice1
9
Felice1  
Sergey Golubev:

According to this article: What the Numbers in the Expert Testing Report Mean

Absolute drawdown is the difference between the initial deposit and the smalles value of balance within testing:
AbsoluteDrawDown = InitialDeposit - MinimalBalance

Maximal drawdown is the highest difference between one of local upper extremums of the balance graph and the following lower extremums:
MaximalDrawDown = Max of (Maximal Peak - next Minimal Peak)


Thank you, but tell me what I already knew.
In the chart you can clearly see both the drawdown is the absolute maximum.
But because my counts are different from that of the relationship?
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