Absolute Drawdown and Maximum Drawdown OutPut Not Correct?

 

Hi,

I have done the backtest using EA : Moving Average.ex4 for EURUSD from 11.21.2018 to 11.24.2018.  I have spent a lot of time to calculate the Absolute Drawdown and Max Drawdown by hand and it does not tally with MT4 output. Is there a possibility the MT4 output is not correct? Kindly help.


Drawdown 

#TimeTypeOrderSizePriceNo of PipsS/LT/PProfitBalance
12018.11.21 11:00sell10.21.69992
22018.11.21 14:00close10.21.70234-24.2 -37.779962.23
32018.11.21 15:00sell20.21.7008
42018.11.23 12:00close20.21.6991516.5 23.349985.57
52018.11.23 14:00sell30.21.69683
62018.11.23 16:00close30.21.70002-31.9 -49.359936.22
72018.11.23 18:00sell40.21.69417
82018.11.23 23:58close at stop40.21.69561-14.4 -23.059913.17


Bars in test1072 Ticks modelled364862 Modelling quality25%
Mismatched charts errors 00
Initial deposit10000 SpreadCurrent(27)
Total net profit-86.83 Gross profit23.34 Gross loss-110.17
Profit factor0.21 Expected payoff (net profit/no of trades)-21.71
Absolute drawdown173.15Maximal drawdown307.39(3.03%)Relative drawdown3.03%(307.39)
Total trades4 short position(won %)4 (25%) Long position (won %)0 (0%)
Profit trades (% of total)1 (25%) Loss trades (% of total)3 (75%)
Largestprofit trade 23.34 loss trade -49.35
Averageprofit trade23.34 loss trade (total loss/no of trades)-36.72
Maximumconsectutive wins (profit in money)1(23.34) consecutive losses (loss in money)2 (-72.40)
Maximalconsectutive profit (count of wins)23.34(1) consecutive loss (count of losses)-72.40 (2)
Averageconsecutive wins1 consecutive losses 2
 
chua le: I have done the backtest using EA : Moving Average.ex4 for EURUSD from 11.21.2018 to 11.24.2018.  I have spent a lot of time to calculate the Absolute Drawdown and Max Drawdown by hand and it does not tally with MT4 output. Is there a possibility the MT4 output is not correct? Kindly help.

It is correct! There is nothing wrong with the calculation!

The Absolute Drawdown is calculated based on your Equity vs. the Initial Balance, while the Maximal Drawdown and Relative Drawdown are calculated based on Equity vs. Equity (not Balance vs Balance). So at some point your Equity must have been higher than the initial balance, so as to account for the 307.39 Maximal Drawdown compared to the 173.15 of Absolute Drawdown and it must have also been lower than your final balance to account for a 173.15 of Absolute Drawdown compared to your 86.83 of final loss.

 
Thanks Fernando for the reply. Actually I have done the hand calculations for the equity changes by measuring the pips from the  chart (blue horizontal lines attached above) and plot the equity chart. Yet it did not yield the answer as tabulated in the table for Absolute Drawdown and Max Drawdown. Kindly help.
 
chua le: Thanks Fernando for the reply. Actually I have done the hand calculations for the equity changes by measuring the pips from the  chart (blue horizontal lines attached above) and plot the equity chart. Yet it did not yield the answer as tabulated in the table for Absolute Drawdown and Max Drawdown. Kindly help.

Drawdown is not measured in "pips". It is measured in "money" (Account Currency)!

Track the values of AccountBalance() and AccountEquity() within your EA on every OnTick() event and you will see that it does in fact calculate correctly. If your calculations are saying otherwise, then you should check those to find the error.

When analysing your calculations, make sure to account for spread and commission and swaps if applicable.

 
Thanks Fernando.