Maximum drawdownis an important trading statistic to track in your backtesting and live trading. In backtesting, it shows you the downside risk of a strategy. Tracking max drawdown in live trading helps you understand when your strategy might not be working as expected or you might be in a ...
Evaluate the performance of the trading strategy based on the recorded results. Calculate keyperformance metricssuch as profitability, risk-adjusted returns, win rate, drawdowns, and any other relevant statistics. Step 6: Refine and optimise the strategy Identify areas for improvement and optimisation ...
Thanks to this function, you can not bother with calculations: now you have two options - specify the value of the lot manually or use the risk management function. In the second case, Forex Tester will calculate the value of the lot for you. Every trader should have the choice which tra...
To calculate the cash available for sweeping, we take the beginningcash balancethat is found on last year’s balance sheet under assets and subtract from it the estimated minimum cash balance required to keep a company running. Further diligence is performed if we need an accurate minimum cash ...
A classic example is using the closing price to calculate a buy entry but actually entering the stock on the open of the bar. In other words you trade before the signal. This is called a future leak and it can be surprisingly easy to do if you are not careful. ...
To calculate the coefficient of linear correlation between sequences X and Y, it is necessary to find mean values M(X) and M(Y) first. Then we will create a new sequence T=(X-M(X))*(Y-M(Y)) and calculate its mean value as M(T)=cov(X, Y)=M((X-M(X))*(Y-M(Y))). ...
point in my career to focus on more important things in life. Of course, Bill Perkins’ net worth is much higher, but in qualitative terms, I can still relate to his life story. Why work into my 60s to build an even larger nest egg when I had enough at age 44 to l...