Free Margin vs Margin Level vs Drawdown
And here’s my balance before and after the last 4 losing positions were closed:
looks good to me. up until those few, last possitions. But with such a small balance, it may have been just a bad day; does not mean that it was any error in the strategy or in what you did or did not do. I recommend cent accounts to be used with such small deposits.
as for those terms. just search google and this website. there are specific definitions that are used in the strategy tester, but I believe that the calculations might be different for 1 or more of the terms when regarding the report above.
Can someone please educate me on the following terms in MT5's Trade tab, and which one(s) is/are the more/most important one(s)?
• Balance
• Equity
• Margin
• Free Margin
• Margin Level
• Drawdown
• Max. Drawdown
• Deposit Load
I was doing well until all of a sudden I blew my account today: I don't know how to interpret drawdown I guess
[IMG]https://c.mql5.com/3/446/Balance.gif[/IMG]
I think I'm on the right track, but I can't continue if I don't know which one of those terms above is the most important one, and how to interpret them.
You can also point me to an article that explains them all.
Thank you.
You might want to check this out:
https://www.babypips.com/learn/forex/preschool
- www.babypips.com
Can a mod also help me make this uploaded gif visible like the first one?
looks good to me. up until those few, last possitions. But with such a small balance, it may have been just a bad day; does not mean that it was any error in the strategy or in what you did or did not do. I recommend cent accounts to be used with such small deposits.
as for those terms. just search google and this website. there are specific definitions that are used in the strategy tester, but I believe that the calculations might be different for 1 or more of the terms when regarding the report above.
Thank you for the answer Mike. Yes, I think with such a small account ($100) one needs to trade at nano-lot (0.001 lot). But unfortunately, micro-lot (0.01 lot) is as small as my account goes.
So you think my strategy (aka whatever I'm doing) is good?
Which one of those terms I need to pay the most attention to? I'm guessing Free Margin? How should I interpret it? I understand you asked me to google them, I had googled them before I posted here, but I then realized hearing what experienced folks here have to say would be more beneficial.
Thank you again.
with less than 1000 trades, I could not even guess as to if the strategy "is good", but it looks promising.
This website is a "fount" of information on trading. So just use the search bar at top of the desktop version of the website and just keep searching for terms and select especially the MQL Help pages and the forum pages. All of the terms have over simplified definitions on some pages, while on other pages can be complicated definitions and might not be clear. But if you read a few of both, you will be sure to meet somewhere in between and you will get the "gist" of each terms meaning.
balance and equity would be my most important numbers. It might be self explanatory, however it must be said, if equity is below balance then, I know that I have a running or floating loss, or a negative P/L or a floating drawdown.
If equity is above the balance, then, obviously, I am in profit. After that, the next important terms are probably drawdown and Free Margin and Margin Level. But if you need to be watching these 3 values, then, you are probably having a bad day or you have far too many trades open at same time.
with less than 1000 trades, I could not even guess as to if the strategy "is good", but it looks promising.
This website is a "fount" of information on trading. So just use the search bar at top of the desktop version of the website and just keep searching for terms and select especially the MQL Help pages and the forum pages. All of the terms have over simplified definitions on some pages, while on other pages can be complicated definitions and might not be clear. But if you read a few of both, you will be sure to meet somewhere in between and you will get the "gist" of each terms meaning.
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• Balance
• Equity
• Margin
• Free Margin
• Margin Level
• Drawdown
• Max. Drawdown
• Deposit Load
I was doing well until all of a sudden I blew my account today: I don't know how to interpret drawdown I guess
[IMG]https://c.mql5.com/3/446/Balance.gif[/IMG]
I think I'm on the right track, but I can't continue if I don't know which one of those terms above is the most important one, and how to interpret them.
You can also point me to an article that explains them all.
Thank you.