Sparring on MetaQuotes-Demo demo accounts - page 118
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Sorry, got sick.
I will try to do the monitoring for May tomorrow.
Hello all.
Here's what I think.
Profit is the positive difference between total revenue (which includes revenue from sales of goods and services, fines and compensation received, interest income, etc.) and the costs of producing or acquiring, storing, transporting, marketing these goods and services. Profit = Income - Costs (in monetary terms).
Any trading activity, whether it is trading in financial markets or potatoes at the bazaar, involves two operations: opening a position - closing a position. In other words, there is no point in assessing trading operations if the positions have not been closed yet.
The equity graph is nothing but a chart of a trading instrument expressed in the volume of an open position. As long as the positions are not closed, it is not possible to evaluate the trading activity.
Example: Vasya bought 10 t of potatoes and Petya bought 5 t of potatoes. Purchased potatoes is equity - the position volume multiplied by the market price of potatoes. Now, participants are evaluated by the volume of open positions; the one who has more equity, is the best.
But who will make more profit (profit is the evaluation of trading activity)? Vasya? - It is far from certain. It depends on the time of year (potato price), and on the market place (potato price). In the end, Petya can make more profit by selling at a low price, for example, but often. But Vasya was selling potatoes at a high price, he was unable to sell some of them, and the rest of the potatoes rotten, so Vasya made a loss, and Petr made a profit with a smaller volume of potatoes.
So, any trading activity can be evaluated only by its profit - when the deals are closed. There is no sense in comparing participants with open positions.
Therefore, wherever "equity" is mentioned in the description and the rules, it should be replaced with "balance", it is the change in the balance that makes sense - profit. And, accordingly, include a requirement for participants to close all positions before the end date of the competition. In case of remaining open positions, the participant will be disqualified.
Pay close attention to the balance of closed positions.
Another example. How to evaluate the trading activity of two supermarkets? - they trade the same list of groceries (trading tools) - now the championship evaluates the supermarkets by the volume of purchased goods in stock. Like who has more goods in stock - that's who wins. But the goods must still be sold! That is, it is not enough to open a position - the position must also be closed. As a result, supermarket with a flexible pricing policy and making more sales (turnover) may make more profit. than the supermarket with a large stock of goods in stock. but selling goods at inflated prices and in an inconvenient location - few customers. As a result, some of the goods will spoil and will not be sold, will have to throw away goods (close positions), you get a loss. Thus a supermarket with less goods in stock can make more profit than a supermarket with a full stock.
The point is that financial activity can only be assessed on closed positions. It does not matter how much product you have in stock - you still have to manage to sell it.
Look at the accounts of companies. So much product has been produced (open position) and so much product sold (closed position) - this is the company's profit. They use the profit to evaluate the financial performance of the company. So what if LG made G5 last year investing a lot of money (opened positions) - if they cannot sell (cannot close positions)? It doesn't matter how much product is in the company's stock, you have to look at how much product was sold in the period (profit on closed positions).
Is there no one here with a financial background? Can no one clearly explain to these traders what profit is?
Try going to the bank and taking a loan, waving charts of trading instruments and proving how you will make money! You will be laughed in the face because it is not enough to open a position, you must also close it!
Let's admire the picture of gold:
Remember the enticing advertisements from banks before 2011 urging them to buy gold, showing clients the rising price? Do you see such appeals from banks now? Vasya Pupkin is quietly marveling at himself, having invested in gold in August 2011!
- Sarah, I joined the MMM!
- Fool! You should've joined a shithole, it would've been less of a drain on the budget!
Is Sarah right? Partly, because the risks are very high. But it is too early to judge her husband's financial move until he closes the MMM deal. Some have really made a profit and some have gone bankrupt by not closing the contract on time.
Once again - any trading activity can only be evaluated after positions have been closed (contracts, sales of goods, etc.).
At MQ championships, positions were forcibly closed. Closed! Forced because the participants had no access to EAs. That is, by the end of the championship, all trades of the participants were closed. Expert Advisors that had the last day of the Championship closed their positions independently.
In this competition participants have to close positions by themselves because organizers, on the contrary, do not have access to advisers. The same rules apply for all brokerage contests - at the end of the contest, all positions have to be closed!
my may
https://www.mql5.com/ru/signals/293359
corrections:
1) Under the current rules, may the competitor with a final balance lower than the start balance become the winner (in any category)? Can. Need to be corrected.
2) Now the calculation of the Sharpe Ratio and the final score for the second nomination. Signals service and (Vitaly's table) will calculate the Sharpe Ratio taking into account the closed positions. There will be unclosed positions on Friday, we will have to calculate the Sharpe Ratio manually, otherwise the values will be overestimated.
3) If we do not give prizes for 2 nominations in one hand, then theoretically we may receive second nomination from the participant with bigger drawdown, for example 19%, than the participant who took first nomination, 17% (i.e. more stable). Would this be fair?
1) Based on what I said earlier - about the need to close positions before the end of the competition, we can conclude that the participant can take the first place with a balance lower than the starting balance only in one case - if the other participants have even less balance!
2) It is necessary that by the end of the competition all competitors' positions have been closed, correct. Otherwise - disqualification!
3) In general, the decision that the participant, who won first place in both nominations, would give one of the prizes to the next participant in the list was born out of pity, in my opinion. A good thing - the first place winner in both categories must take both prizes! The same can be seen at the Oscars, where prizes are taken away simultaneously in several categories, and rightly so, what can you do if he is the best in more than one category.
- Semyon, I just met Arkasha from next door. So he was bragging about the Certificate of Honour he got because of the low drawdown and at the same time, the bastard asked to "borrow till payday."
- Sarah, what is it that surprises you? You don't sell bread for certificates!
Who forbids you big drawdowns?! You're welcome to it. You can lose a deposit up to your eyeballs, win the first nomination!
We also see that it is possible to earn more than anyone else, and at the same time to avoid drawdowns. The current leader, if he knew beforehand about the second nomination, would have won in both.
- Seema, I want to apply the know-how to my trading!
- ?!
- I've decided to give my subscribers Certificates of Honour instead of profits. Why? If subscribers care about odds and not profits, then certificates of merit are fine.
- Sarah, go to work and don't clog your bright head with arguments.
my may
https://www.mql5.com/ru/signals/293359
You demonstrate a complete misunderstanding of what I am saying. A complete, total misunderstanding. Take an accountancy course somewhere or something....
Sama understands perfectly well - he's not dumb, he wants to say that Sara needs very sound money and she doesn't only want to buy fresh cabbage at the market, she already dreams of a mink coat and a red Ferrari. So tell Sema that the prize money is waiting for him. Not enough for a fur coat and a Ferrari, but a couple of kilos of fresh cabbage, and there will be some left over.
Seema understands perfectly well - he's not stupid, he wants to tell Sara that she needs some very ringing coins. Sara not only wants to buy fresh cabbage at the market, she's already dreaming of a mink coat and a red Ferrari. So tell Sema that the prize money is waiting for him. Not enough for a fur coat and a Ferrari, but a couple of kilos of fresh cabbage, and there will be some left over.
- Seema, I want to apply the know-how to my trading!
- ?!
- I've decided to give my subscribers Certificates of Honour instead of profits. Why? If subscribers care about odds and not profits, then certificates of merit are fine.
- Sarah, go to work and don't litter your bright head with arguers' arguments.
https://www.mql5.com/ru/forum/189038/page56#comment_4916769
Tell Sema that Sema has already signed up for the contest, as per Sara's request.