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Error after deposit

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Nigel Davis
272
Nigel Davis  

 Good afternoon,

                  I would like to know why is it after margin and leaving the account with a 100% DD, The account has then been redeposited into and the Profit shows it correctly but the % change remains negative 100%? Any help would be greatly appreciated as the account is meant to attract people. It is misleading to say the account is in profit but growth is negative 100%.


Thanks in advance,


Nigel Davis 

Fernando Carreiro
3936
Fernando Carreiro  
Nigel Davis: I would like to know why is it after margin and leaving the account with a 100% DD, The account has then been redeposited into and the Profit shows it correctly but the % change remains negative 100%? Any help would be greatly appreciated as the account is meant to attract people. It is misleading to say the account is in profit but growth is negative 100%.

It is not misleading to show that to the users! A deposit is not "growth" and the maximum draw-down will ALWAYS be your maximum draw-down. In fact, you lost your entire balance twice and had to deposit 3 times (not including original balance) in order to get going again.

Changing those metrics to "possitive" values, would in fact be then considered as misleading, because the reality is, that you did not know how to properly access your risk and manage it with respect to your stop size and margin usage and lost your full balance more than once.

Hence, 100% draw-down and -100% growth! There is nothing misleading about that! It is the ABSOLUTE truth! To have growth again, you have to fully recover all that was lost over the entire time of that signal, irrespective of deposits.

Nigel Davis
272
Nigel Davis  
Fernando Carreiro:

It is not misleading to show that to the users! A deposit is not "growth" and the maximum draw-down will ALWAYS be your maximum draw-down. In fact, you lost your entire balance twice and had to deposit 3 times (not including original balance) in order to get going again.

Changing those metrics to "possitive" values, would in fact be then considered as misleading, because the reality is, that you did not know how to properly access your risk and manage it with respect to you stop size and margin usage and lost your full balance more than once.

Hence, 100% draw-down and -100% growth! There is nothing misleading about that! It is the ABSOLUTE truth! To have growth again, you have to fully recover all that was lost over the entire time of that signal, irrespective of deposits.


 How much has the total deposit been and subtract that from the current balance. That is considered "growth". That is what is shown in green as "profit". So why doesn't the % portion reflect the "profit" but in % ? #IdLikeToKnow

Fernando Carreiro
3936
Fernando Carreiro  
Nigel Davis: How much has the total deposit been and subtract that from the current balance. That is considered "growth". That is what is shown in green as "profit". So why doesn't the % portion reflect the "profit" but in % ? #IdLikeToKnow

Your current profit is an absolute value which is = Current Balance - ( Initial Balance + All Deposits ). Growth% is however a totally different matter (see below).

Forum on trading, automated trading systems and testing trading strategies

How is Signal Growth YTD calculated?

Alain Verleyen, 2017.03.04 17:28


How is the Growth in Signals Calculated? https://www.mql5.com/en/forum/10773#q23
The growth shows how the balance of an account grows. It is calculated so that the influence of deposits and withdrawals is avoided.

The entire trade history of an account is divided into periods between balance operations (deposits and withdrawals). First, the total growth coefficient (K) is calculated by multiplying the growth coefficients computed for each period between the balance operations (BO) and then the growth in percentage terms is calculated.

Growth Coefficient К = (Balance before BO1/Initial Deposit) * (Balance before BO2/Balance after BO1 * ... * Balance before BOn/Balance after BOn-1)

Growth in Percentage Terms = (К - 1) * 100%

On the chart below, the balance operations are marked with big red dots and the dashed lines indicate the periods of growth calculation:


Growth Calcualtion

In this case, the total growth for the account is calculated as follows:
Growth Coefficient К = К1 * K2 * K3 = (6 615/10 000 * 17 847/11 115 * 15 547/14 847) = 1.1

Growth in Percentage Terms = (K-1) * 100% = (1.1 - 1) * 100 = 10%

Despite the current balance is about 50% higher than the initial deposit, the real growth due to trade operations is only 10%.


Nigel Davis
272
Nigel Davis  

 Actually.


Total deposits   44,613.     

Balance is         79, 561

---------------------------

Difference of     34,948.56 (Profit) <--- More than TOTAL amount of deposits. 


34,948.56 IS 78.34% OF 44,613 


In other words,

once the profit reaches 44,613 the Abs growth would be 100% 


Wouldn't you agree that Abs Growth is much more important than the metrics used?



Drawdown % will always be 99% 

Fernando Carreiro
3936
Fernando Carreiro  
Nigel Davis:

 Actually.

Total deposits   44,613.     

Balance is         79, 561

---------------------------

Difference of     34,948.56 (Profit) <--- More than TOTAL amount of deposits.

34,948.56 IS 78.34% OF 44,613 

In other words,

once the profit reaches 44,613 the Abs growth would be 100% 

Wouldn't you agree that Abs Growth is much more important than the metrics used?

Drawdown % will always be 99% 

No, I don't agree and neither does MetaQuotes nor the other sites that provide Signals, AutoTrades or other Trade Coping services! It is a metric used world-wide to measure the overall growth of accounts, portfolios and other financial balances.

Plus, lets be truely honest here! You only have two months worth of valid trading as a Signal Provider and you blew your account several times right at the beginning. The metric is in fact doing a good job of reflecting that, and letting potential subscribers know that you have yet to prove your worth and that you are need to prove that you are not going to blow your account again soon.

So be patient! Give it a few more months and let your account grow until it has recovered in terms of overall Growth%. Besides, you have been given the formula on how it is calculated, so calculate at which level you will achieve a favourable Growth%.

Nigel Davis
272
Nigel Davis  
Fernando Carreiro:

No, I don't agree and neither does MetaQuotes nor the other sites that provide Signals, AutoTrades or other Trade Coping services! It is a metric used world-wide to measure the overall growth of accounts, portfolios and other financial balances.

Plus, lets be truely honest here! You only have two months worth of valid trading as a Signal Provider and you blew your account several times right at the beginning. The metric is in fact doing a good job of reflecting that, and letting potential subscribers know that you have yet to prove your worth and that you are need to prove that you are not going to blow your account again soon.

So be patient! Give it a few more months and let your account grow until it has recovered in terms of overall Growth%. Besides, you have been given the formula on how it is calculated, so calculate at which level you will achieve a favourable Growth%.


 Thank you very much for giving me useless information. Once again, if a person asks you How much did you deposit and how much do you have in your account now. If you answer, I have more money in my account now then what i deposited over the life of the account, that would make it over all growth. As for your statement and how other services don't calculate as such, well let me prove your wrong. 


Absolute gain

Files:
Fernando Carreiro
3936
Fernando Carreiro  
Nigel Davis: Thank you very much for giving me useless information. Once again, if a person asks you How much did you deposit and how much do you have in your account now. If you answer, I have more money in my account now then what i deposited over the life of the account, that would make it over all growth. As for your statement and how other services don't calculate as such, well let me prove your wrong.

Thank you for proving my point! I've already stated that absolute gain and overall %Growth is not the same thing and you have just demonstrated that with your example where Growth is -99.55% right there at the top in big bold red font and the Growth graph is just as flat as a pancake (after the hump).


Nigel Davis
272
Nigel Davis  
Fernando Carreiro:

Thank you for proving my point! I've already stated that absolute gain and overall %Growth is not the same thing and you have just demonstrated that with your example where Growth is -99.55% right there at the top in big bold red font and the Growth graph is just as flat as a pancake (after the hump).

Once again, you continue to not answer my question. However, Abs gain is what should be used because ABS gain is wht people know as PROFIT! Growth of -99.55% put a profit of 65,000 usd in cash doesn't make sense. The 65,000 in cash profit is the ultimate factor and what should be used. Misleading is that growth. Yet, people won't be able to ignore over 400% profit in december. :) 

Fernando Carreiro
3936
Fernando Carreiro  
Nigel Davis: Once again, you continue to not answer my question. However, Abs gain is what should be used because ABS gain is wht people know as PROFIT! Growth of -99.55% put a profit of 65,000 usd in cash doesn't make sense. The 65,000 in cash profit is the ultimate factor and what should be used. Misleading is that growth. Yet, people won't be able to ignore over 400% profit in december. :) 

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