- 2018.10.08
- www.mql5.com
Forum on trading, automated trading systems and testing trading strategies
Fernando Carreiro, 2018.10.08 16:13
The drop of 100% is correct in terms of the opening balance. The drop of 58% is in respect to total equity (including multiple deposits), not of the original opening balance deposit of only $300.
I am afraid your strategy or signal has very bad money management even if you wish to consider it to be 58%. I would worry more about you fixing that than the difference of opinion on how the metric should be calculated.
Don't mix up the concepts of Monthly %Growth or Annual %Growth with the concept of Total %Growth since the beginning!
Also, your current balance is positive due to the deposits you made, otherwise it would be in the red negative zone and that is why it is still -100%.
Only when you have been able to completely recover all that was lost (that is break-even), in trade profit and not in deposits, will it then begin to grow above 0%.
Don't mix up the concepts of Monthly %Growth or Annual %Growth with the concept of Total %Growth since the beginning!
Also, your current balance is positive due to the deposits you made, otherwise it would be in the red negative zone and that is why it is still -100%.
Only when you have been able to completely recover all that was lost (that is break-even), in trade profit and not in deposits, will it then begin to grow above 0%.
Because the first graph represents Growth% and the second graph represents Balance (USD)! The units are different!
Even though you made deposits in July, the money you lost in August ($524 - $904 = -$380) was greater than your previous months closing growth balance ($300 + 4.62% Growth = $313.86), not including any deposits. So if you had $313.86 and lost $380, you are now in the negative by -$66.14 for the month of August!
Moral of the story: Extra deposits do not affect or change your growth potential. Only the original Opening deposit is the deciding factor.
Because the first graph represents Growth% and the second graph represents Balance (USD)! The units are different!
Even though you made deposits in July, the money you lost in August ($524 - $904 = -$380) was greater than your previous months closing balance ($300 + 4.62% Growth = $313.86), so if you had $313.86 and lost $380, you are now in the negative by -$66.14 for the month of August!
Closing balance in July was $916.85, August $521, September 588. And now there is $740.
No! $909.52 is your balance due to deposits. Your Growth balance is ($909.52 - Extra Deposits) = ($909.52 - $600) = $309.52. So, don't confuse your actual balance with your Growth balance (Original Deposit + profit/loss) which does not include any later deposits or withdrawals.
Fernando Carreiro:
No! $909.52 is your balance due to deposits. Your Growth balance is ($909.52 - Extra Deposits) = ($909.52 - $600) = $309.52. So, don't confuse your actual balance with your Growth balance (Original Deposit + profit/loss) which does not include any later deposits or withdrawals.
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