My Signals / Incorrect drawdowan statistics - page 2

[Sergey Golubev]

Grzegorz Gruszka:

Hello Sergey,

Thank for you reply. However it is not relevant. If you read the post above, from Eleni, you will read that technicians already identified the problem comes from the inability of the processing algorithm to handle a deposits while there are open trades. I am not arguing the rules, my request here is to improve the algorithm, especially that 3rd party sites can do this without problems.

Best regards,

Greg

I was posting about limitations (the case when the special rules are used).

Forum on trading, automated trading systems and testing trading strategies

My Signals / Incorrect drawdowan statistics

Eleni Anna Branou, 2020.08.31 15:19

MQL5 technicians have replied: We've analyzed this case and can say that the calculation is right. It's a very complex algorithm. For this signal balance operations were performed while trading orders were open, so special calculation rules were used. We can only advise not to perform balance operations with trading orders open.

For example, -

• subscription is prohibited in case of drawdown is more than 30% (to protect potantial subscribers);
• the other stats calculation rules: in case of balance operations (deposit/withdrawal) with open trades so this balance operations may be ignored by the signal system (or may be not ... because most things are not disclosed ... but from what I see - yes, it was ignored); this action should protect potential subscribers because lot size for that are calculated based on deposit size also; means: if signal provider deposit/withdraw money from/to his trading account with open positions so his subscribers lose money because of that;
• abnormal monthly growth is ignored by the system; it means the following: if you as a provider made 100% or 200% growth for some month so this growth will be ignore (means: it will be zero for this month instead of 100% or 200%);
• some more - you can check on the first page of this thread: Signals - Reliability
  

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

Because it was a lot of complaints in past: the providers are increacing their deposits with open trades, and their subscribers are losing money because of that.
Example, -

Forum on trading, automated trading systems and testing trading strategies

Manipulating the size of the current drawdown in the Signals service.

Eduard_D , 2018.04.27 18:50

The provider, if necessary to reduce  the current drawdown (as a rule, when it approaches 30%), deposites funds to the account and the drawdown "magically" decreases immediately. And what about Subscribers who cannot fund their account in a proportional way? For Subscribers, the proportion between the volumes of already open transactions and any new transactions of the Provider is violated.

Even if there are no Followers at the moment, depositing the funds with open deals allows the Provider to manipulate the size of the current drawdown in the Signal history.

...

The real situation that happened today. The Provider's account balance before the top-up was 788 USD.

...

[Sergey Golubev]

"..especially that 3rd party sites can do this without problems .."

So, it may be the difference related to the goals:

• the goal of 3rd party sites is to show the real situation with the account/trades/and so on; they do not have any goal to protect potential subscribers from losing money;
• one of the main goal of this signal service is to protect potential subscribers; if some real situation may be changed by this action so - it is not a problem (because the users will not subscribe to such risky signals); example - who will subscribe to the signal with 100% drawdown? No one. It is about the rating too ...
  and all the formulas are not disclosed to the public.
  

[Sergey Golubev]

I understand that 7% from 2.000 USD is small drawdown, and 7% from 125.000 USD is small drawdown as same 7% (in percentages).
But the lot size of subscribers are calculated based on balance of providers too (they will get margin call by this action).

It is reply of admin related to the "monthly growth limitation" (it may be same for drawdown):

Forum on trading, automated trading systems and testing trading strategies

FAQ for the Signals service

Rashid Umarov , 2018.10.27 16:45

You can count as you like for yourself. But the algorithm for calculating the growth in the Signal service will not be changed - any balance transactions in the presence of open positions will be interpreted negatively. Precisely in order not to play these games, "let's count like this." The question is closed.

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

I collected many replies of admins related to those limitations (from Russian forum and from this English forum).
All those things are not announced so it was difficult to get information.
And I think - some information related to limitations (exact formulas, and so on) is not disclosed sorry.

[Grzegorz Gruszka]

Eleni Anna Branou:

You don't have an active signal anymore as I see.

Hi Eleni,

You right, my bad. It was private, I made the signal public again just now:

<...>

Best regards,

Greg

[Grzegorz Gruszka]

Sergey Golubev:

"..especially that 3rd party sites can do this without problems .."

So, it may be the difference related to the goals:

• the goal of 3rd party sites is to show the real situation with the account/trades/and so on; they do not have any goal to protect potential subscribers from losing money;
• one of the main goal of this signal service is to protect potential subscribers; if some real situation may be changed by this action so - it is not a problem (because the users will not subscribe to such risky signals); example - who will subscribe to the signal with 100% drawdown? No one. It is about the rating too ...
  and all the formulas are not disclosed to the public.
  

Hello Sergey,

I fully support idea of protecting potential subscribers. This should be the first fule for service like yours. This will be my last attempt to convince you that stats for the account are inconsistent at least (I will not bother you for this topic any more about it). Still kindly ask you for the review below for the las time:

This is the draw down chart for the account which is correct:

Monthly stats (not correct from my perspective):

Both charts are at least inconsistent. Monthly grow for August is -100% while the DrawDown chart never shows this, for the August it shows max DD of ~10%.

Again, I fully support protection of potential subscribers. However, broken statistics does not provide much confidence in the numbers.

All the best,

Greg

PS. The signal overview page does not show the account leverage correctly. My account leverage is 1:30 for major currencies and 1:20 for indices which I trade mostly.

[Sergey Golubev]

Grzegorz Gruszka:

Hello Sergey,

I fully support idea of protecting potential subscribers. This should be the first fule for service like yours. This will be my last attempt to convince you that stats for the account are inconsistent at least (I will not bother you for this topic any more about it). Still kindly ask you for the review below for the las time:

...

I understand what you mean (and you are not the first user who asked it).
But I collected all the information which I could collect.

I can repeat: I was reading several replies of admins in Russian forum (user asked), and admins told that balance operations with open trades are very negatively affected on anything, and the special rules are used because of that. I did not find any details about it sorry.

You can write to the service desk informing them about your signal stats (but please, do not expect quick reply).