Why the chart shows -100% ?

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Hello, can anyone please explain the first graph on the attached picture? Why is the line still showing -100% growth?


The picture is in attachment.

Files:
MyAccount.jpg  148 kb
 
https://www.mql5.com/en/forum/282831
Poorly calculated statistics
Poorly calculated statistics
  • 2018.10.08
  • www.mql5.com
Hello. I have a problem with poorly calculated statistics in my signal...
 
But why does the line still show -100% when it was 12.75% in September and 26% in October? The second chart shows the growth correctly.
 
Vaclav Macak:

Forum on trading, automated trading systems and testing trading strategies

Poorly calculated statistics

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.


 
Okay, but now the account status is $ 740. This is against $ 524 when the chart showed -100%, an increase of about 40%. If I take $ 300 as 100% for the calculation and now I'm down $ 160, the chart should show about -53%.
 
Vaclav Macak: Okay, but now the account status is $ 740. This is against $524 when the chart showed -100%, an increase of about 40%. If I take $300 as 100% for the calculation and now I'm down $ 160, the chart should show about -53%

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%.

 
Fernando Carreiro:

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%.

I understand why annual growth is -100%. But I do not understand why the line of the first chart does not respond to the change in the balance in the account. Likewise, I do not understand why the drop is taken as a 100% first deposit and for the growth of the account at the beginning of the month: August $ 904, dropping to $ 524 = -100%, September $ 524, rising to $ 588 = 12.75%. I made all the deposits in July.
 
Vaclav Macak: I understand why annual growth is -100%. But I do not understand why the line of the first chart does not respond to the change in the balance in the account. Likewise, I do not understand why the drop is taken as a 100% first deposit and for the growth of the account at the beginning of the month: August $ 904, dropping to $ 524 = -100%, September $ 524, rising to $ 588 = 12.75%. I made all the deposits in July.

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.

 
Fernando Carreiro:

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.


I think monthly growth is calculated by the balance of the bill from the past month. If I put $ 100 in the month, the second month $ 900 (I have $ 1000), so if I earn $ 100 a third month, it will grow 10%.
Files:
August.png  32 kb
September.png  22 kb
July_31.png  25 kb
 
Vaclav Macak: Closing balance in July was $909.52, August $521, September 588. And now there is $740. I think monthly growth is calculated by the balance of the bill from the past month. If I put $ 100 in the month, the second month $ 900 (I have $ 1000), so if I earn $ 100 a third month, it will grow 10%.

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.

How is it possible that in September I will grow 12.75% when the account grows to 588 (588-521 = 67, 67/300 = 22%)
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