New Signal drawdown and max deposit load not correct

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Hello,


I have a new signal setup, however, it drawdown and max deposit load is not correctly displayed.

The DD should be about 15% but it display it display 75%

Can someone help?

 

Forum on trading, automated trading systems and testing trading strategies

MY signal is showing a false drawdown level.

Eleni Anna Branou, 2022.03.18 17:38

Drawdown is not only the live drawdown of open trades, but also the account balance drawdown between high and low points.

You may never had more than a 3-4% live drawdown, but if you had 6-7 consecutive losses of 3%, that adds up to about 20% max drawdown.

 
Sergey Golubev #:

Thank for the reply.


I am sure the consecutive draw down is 15% max. 

I think it is not nice to add the link here. But if anyone want to take a closer look, I can give you the link in the PM.



The make a screenshot of the equity and balance chart.  Lowest DD occured at 1- 51/54 = 6 percent
 
Sunfire #:

Thank for the reply.


I am sure the consecutive draw down is 15% max. 

I think it is not nice to add the link here. But if anyone want to take a closer look, I can give you the link in the PM.



The make a screenshot of the equity and balance chart.  Lowest DD occured at 1- 51/54 = 6 percent
Your chart (attachment) is not a proof for your drawdown.
Because it is maximum drawdown in the signal calculated, and the max drawdown is the following:

Forum on trading, automated trading systems and testing trading strategies

Ask about Drawdown

Sergey Golubev, 2016.11.09 08:34

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)

    The maximal drawdown percentage shows the ratio between the maximal drawdown and the value of respective local upper extremum:

    MaxDrawDown % = MaxDrawDown / its MaxPeak * 100%
Any expert can be tested on history data. After the expert has been tested, the summarized expert testing results and some key characteristics are displayed in the "Report" tab. Reports allow comparing to each other both various experts and the working results of the same expert with different inputs working. This article explains how to read such reports and to interpret the obtained results properly.
Also - read my previous post about "drawdown between high and low points."

I replied in general (in theoretical) way because I do not know (and I did not analyze) the performace of your signal.
But everything is automatically calculated for all the signal providers and I do not think that it is mistaken.
The only way to check may be the following: some stats (statistics/data)of the signal performance are refreshed/recalculated after midnight, it means: if you created this signal today so - wait for few more days when the stats will be recalculated.
Besides, if you traded  on this account before you created the signal (if it is old/unmonitored) performance so sorry ... it is recommended to create a signal first, and after that only make a first trade on the account.
 

Another signal site calculated the DD as 2%, which is closer to my manual calution.
It is ineresting to see so much difference between 2 sites' way of calculating the DD, by a whopping difference of 70%. 


And definately the max balance load by Mql5.COM is wrong, as I saw all the way of equity is about 6k from 54k account.

 
Sunfire #:

Another signal site calculated the DD as 2%, which is closer to my manual calution.
It is ineresting to see so much difference between 2 sites' way of calculating the DD, by a whopping difference of 70%. 


And definately the max balance load by Mql5.COM is wrong, as I saw all the long of equity is about 6k from 54k account.

There are several kinds of drawdowns.
For example, there is drawdown on equity open trades (absolute drawdown by equity), and there are max drawdown (read the explanation above about max drawdown).
For example, I am also trading (in Metatrader only, I am not signal provider), and for my trades:
  • absolute drawdown by equity, and
  • max drawdown is 69% with drawdown factor = minus 62 pips only.
So, it depends on what and how to calculate, and it depends on which drawdown the system wants to show for subscribers.
Of course, drawdown on equity open trades (you are talking about it now) is completely different from max drawdown.
 
Sunfire #:

Another signal site calculated the DD as 2%, which is closer to my manual calution.
It is ineresting to see so much difference between 2 sites' way of calculating the DD, by a whopping difference of 70%. 


And definately the max balance load by Mql5.COM is wrong, as I saw all the way of equity is about 6k from 54k account.

Seems you are not reading my replies ...

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