Help on explation of a signal growth - page 2

 
Keith Watford:
...

The calculated growth does not reflect the actual performance.

Your calculation are correct but your conclusion is wrong.

It has already be explained and proved that growth's calculation are correct and reflects the actual performance of the signal. Which is not the same as how much the provider earned (or grew up).

The growth is calculated as it should be. You can't just make as withdrawal didn't occur, there is no problem and no trick here.

Forum on trading, automated trading systems and testing trading strategies

How are signal % gain calculated? Can they be gamed

Alain Verleyen, 2018.12.23 15:43

Equity has nothing to do with growth, only balance.

Attached a OpenOffice Calc file where I took the trading history and add formula to show you how growth is calculated. I got a slight difference (1180% instead of 1185%), maybe due to some rounding in mql5 system where I didn't round at all, not sure. But you will get the idea.

If you again withdraw the profit and make 100% the next month

total profit will be $300, a 300% increase on the original balance.

Growth, however will be calculated to 700%

What an investor needs to know is : if he had invested say 1,000 USD, how much would he have after X months. The answer is 8,000 USD, so 700%. Signal performance is 700%, not 300%.
 
Alain Verleyen:

Your calculation are correct but your conclusion is wrong.

It has already be explained and proved that growth's calculation are correct and reflects the actual performance of the signal. Which is not the same as how much the provider earned (or grew up).

The growth is calculated as it should be. You can't just make as withdrawal didn't occur, there is no problem and no trick here.

What an investor needs to know is : if he had invested say 1,000 USD, how much would he have after X months. The answer is 8,000 USD, so 700%. Signal performance is 700%, not 300%.

That's right..


But the question is, how about the deposits added by the provider, as in the example, initial deposit is 100$ and adding 8700$ as deposits..? The additional deposits was not accounted as part of the actual signal performance and sure the investor will not expected any additional deposits.

 
Agung Siswanto:

That's right..


But the question is, how about the deposits added by the provider, as in the example, initial deposit is 100$ and adding 8700$ as deposits..? The additional deposits was not accounted as part of the actual signal performance and sure the investor will not expected any additional deposits.

That's would be similar to withdrawal, if it's done when trades are not open.

When trades are open and deposit are used to avoid loss or stop out, I am not sure as I didn't check. So on that point maybe Keith is right.

 

The discussion was to the point, was great and beneficial.

I personally benefited from it and now I understand the logic behind it.

Thanks to all