Discussion of article "The Easy Way to Evaluate a Signal: Trading Activity, Drawdown/Load and MFE/MAE Distribution Charts"

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New article The Easy Way to Evaluate a Signal: Trading Activity, Drawdown/Load and MFE/MAE Distribution Charts has been published:

Subscribers often search for an appropriate signal by analyzing the total growth on the signal provider's account, which is not a bad idea. However, it is also important to analyze potential risks of a particular trading strategy. In this article we will show a simple and efficient way to evaluate a Trading Signal based on its performance values.

The account balance and equity values of each signal are monitored since the account registration in the Signals service. The difference between these values ​​is positive, if currently open positions show a floating profit. But if the equity is less than the balance value, it means that the trading account is having a drawdown or unrecorded loss.

Author: MetaQuotes Software Corp.

 

There is no very important indicator: mat. expectation on the symbol in pips - MOP.

It is absolutely irrelevant with what purposes the account is traded. Long-term or pipsator.

When copying each trade there is a double loss on slippages + commission. On EURUSD it is about 10 pips. Therefore, if MOP_EURUSD < 10 - immediately reject.

 
Very good point. MO in dollars is a "nothing" indicator for TC. I have long ago switched to points (or percentages rather) in my programmes.
 

The load graph speaks about such an important factor as the application of man-management. The more competently a trader approaches account management, the lower this indicator is.

The red colour would highlight the information about the load on the subscriber's account from leverage and slippage. This information is important for beginners. Because experienced subscribers do not need this article.

 
There is a parser of Signals on mq4.com. Today I checked it because of one topic on the forum - it works. This is how you can still evaluate

Forum on trading, automated trading systems and testing trading strategies.

Zelinsky's Offtopic

fxsaber, 2016.09.24 14:17

The best way to do this is to use a steith. Here is what the kimov script shows

There was also a stats aploader on a good online analyser. I tried to send the Signal there using it, but it failed - the apload format changed.
[Deleted]  
fxsaber:

There is no very important indicator: mat. expectation on the symbol in pips - MOP.

It is absolutely irrelevant with what purposes the account is traded. Long-term or pipsator.

When copying each trade there is a double loss on slippages + commission. On EURUSD it is about 10 pips. Therefore, if Mop_EURUSD < 10 - immediately rejected.

I think the reason is the same ... 90% of this indicator should be in the trash ...
 

Thank you! I understand!

 

EXCELLENT ARTICLE! 

Everyone involved in forex, especially in expert advisors, should read this.  

 
Thank you, its very helpful. 
 
very detailed article. Thank you very much.
 
Thank you for a very useful article. However, I couldn't understand the drawdown chart section. Can anyone helps me please? 1) "Review the chart of drawdown over the entire signal monitoring period in order to understand what was the risk on the account before a position was closed with a profit." How can I determine the potential risk from the chart? 2) "For example, in this case we see that the profit over the trading account lifetime was 18% to 76% per month, while the floating drawdown reached more than 16% in May. Compare the account drawdown and profit to decide if you are ready to lose 18% (or multiply it by 3, that is 18 * 3 = 54%) of the deposit if the same drawdown happens on the provider's account again”. Why did the write consider that 18% is a loss, isn't that a profit from May? Also, why should I multiply it by 3? Where did this 3 came from? Lastly, is the drawdown 54% or 18%? I'm sorry if these questions seemed obvious, I'm beginner and I'd really appreciate if someone explains to me. Thank you :)
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