VCC MT4-2讨论

Hi,

Have you forgotten to close the 3 AUDUSD Buy Trades on Aug 13?

They are drawing down the system to 25%. And we had multiple opportunities to close them at $0.

Will you pls look into them?

Thank you.

No JForex78, I do not forget them.

That was from 2 months ago... but thanks.

DD value in here is not the true DD. Currently is just based on Equity%. That is (Equity/Balance)%. DD= 100%- Equity%. That is DD= (Balance-Equity)/Balance. That is not truly DD per definition.

The DD should purely based on Equity. It should be like this: True DD= (EquityPeak- Equity)/PeakEquity.

The DD calculated here leads to higher DD value when your balance grow even though the Equity stay unchanged.

Example:
  At time 0:
      Balance= 1000; Equity= 1000;
  At time 1:
      Balance= 1000; Equity= 900; EquityPeak= the highest equity in the past= 1000; DD= (1000-900)/1000= 10%; TrueDD= (1000-900)/1000= 10%
  At time 2:
      Balance= 1100; Equity= 900; EquityPeak= the highest equity in the past= 1000; DD= (1100-900)/1100= 18.18%; TrueDD= (1000-900)/1000= 10%

The 18.18% above is not right. The equity still stay the same compared to it at time 1 so the drawdown should stay the same at 10%.

JForex78 posted:
That was from 2 months ago... but thanks.

I replied to you long ago in private message.

PLEASE GREETINGS,
Please my name is John and have been so happy to have gotten in torch with you guys please i have read everything about the robot and in fact you have an amazing EA which the world has to embrace it.

(Please normally reading descriptions on you tube on EA looks very interesting but after you buy the robot you will even regret that you bought it.. I have bought soo many robot which i ended up loosing my money all because when you ask owners to of tell you how to set for the deposit amount... in fact they wont mine you. Please i hope this robot will be my last stop of buying a robot.)

PLEASE ARE YOU ON WHATSAPP WHICH I CAN CONTACT YOU DIRECTLY

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CASHLOVE,
 if you click my name you can see my profile. The contact information is listed there.

Regards

CuongVC posted:
DD value in here is not the true DD. Currently is just based on Equity%. That is (Equity/Balance)%. DD= 100%- Equity%. That is DD= (Balance-Equity)/Balance. That is not truly DD per definition.

The DD should purely based on Equity. It should be like this: True DD= (EquityPeak- Equity)/PeakEquity.

The DD calculated here leads to higher DD value when your balance grow even though the Equity stay unchanged.

Example:
  At time 0:
      Balance= 1000; Equity= 1000;
  At time 1:
      Balance= 1000; Equity= 900; EquityPeak= the highest equity in the past= 1000; DD= (1000-900)/1000= 10%; TrueDD= (1000-900)/1000= 10%
  At time 2:
      Balance= 1100; Equity= 900; EquityPeak= the highest equity in the past= 1000; DD= (1100-900)/1100= 18.18%; TrueDD= (1000-900)/1000= 10%

The 18.18% above is not right. The equity still stay the same compared to it at time 1 so the drawdown should stay the same at 10%.

@CuongVC

Thats a good argument.

But remember,
DD= (Balance-Equity)/Balance

Is the classic formula. Because DD is really trying to measure 'the gap' between the current balance, and current equity.

Even though your balance increases, and equity remains same - the gap has increased. Thats what the 18.18% is trying to report.

What its saying is, that equity has not caught up with increased balance yet.

Balance increase faster than equity, in this period. That is totally fine with me because the key is the equity. Your account is worth at your equity value.

So, try to focus on the equity number, not the balance. The gap between balance and equity is just unrealized loss which will fluctuate and become will smaller when the price pull back which it always do.

CuongVC posted:
 the key is the equity. Your account is worth at your equity value.

Correct. But DD has got nothing to do with which is more important between Balance and Equity.

The classic DD formula measures the gap between Balance and Equity, at the same time on Time axis.

If you are going to measure the difference between Equity and Equity itself, one Peak and one Current, now you cannot have the same time on time axis. You have to pick them from two separate times - one somewhere in the past, and one current. Which is a flaw.

This is why MyFXBook, SignalStart, MQL5, all of them define and calculate DD as difference between Balance and Equity, at a given time.

They are not going to change that if someone thinks it should be a difference between Peak and Current Equities - try asking them to change it!

DD has been calculated different than the true DD by definition and so misleading. Most people don't understand it and this will impact their evaluation of trading performance.

That is what I want to say and hopefully more people can really understand and better pick the right one to follow.

Highest Equity achieved!

This account currently shows (After withdrawing $2,000 about 45' ago):

Balance: $96,995.03
Equity: (49.68%) $48,184.16
Floating PL: -$48,810.87
Deposits: $25,585.92
Withdrawals: $14,881.24


So, do not get fool by the Equity percentage (49.68% above). The main thing is the equity keep growing.

Good trading to all.

I am freeing up the margin to gradually withdraw the money out of this account.

See that the balance go down a lot but the equity is going up. Equity is the key!!!

At this moment:

Balance:$71587.56
Equity:(74.12%) $53061.59
Highest:(Nov 14) $101297.65
Profit:$60882.77
Interest:-$3681.61
Deposits:$25585.92
Withdrawals:$14881.24

Note that the Equity (including withdrawals and deposits) is at its highest: $53061.59 + $14881.24(withdrawals) - $25585.92 (deposits) = $42356.32. This is real profit, currently the highest.

That is why the profit sharing fee is based on Equity High Water Mark.

The gain curve is actually based on the balance value which is not really count and so can be misleading.

The real important thing is Equity, Equity curve (if we don't do any withdrawing and depositing along the way).

What happened on Oct.2nd? I see one trade after the other - all negative. Ouch! Isn't there some kind of SL implemented? I have also a trading rule in my EA, that it stops trading on any day, if there is a certain amount of capital lost.

fastdrive55 posted:
What happened on Oct.2nd? I see one trade after the other - all negative. Ouch! Isn't there some kind of SL implemented? I have also a trading rule in my EA, that it stops trading on any day, if there is a certain amount of capital lost.

You mean the 15th of November, or? That day looks a bit crazy in my opinion aswell.

marco_mmbiz posted:

fastdrive55 posted:
What happened on Oct.2nd? I see one trade after the other - all negative. Ouch! Isn't there some kind of SL implemented? I have also a trading rule in my EA, that it stops trading on any day, if there is a certain amount of capital lost.

You mean the 15th of November, or? That day looks a bit crazy in my opinion aswell.

As stated previously, the 'loss' you see is just on the balance, not on equity. That is why I called it 'cleaning thing up'.

Equity is the key. Don't be fooled by the balance value.

Many traders look/focus on the balance number, not equity number. Their balance going up but the equity keeps going down.

Yes, Marco. But I can see the losses on the 'history' page in October, which is odd. I cannot explain that either.

Do this test for yourself and see what I want to say...

On a $10,000 account, buy and sell 1 lots of EURUSD. Wait for the market to move up 200 pips. The 'buy' trades will be in profit ~10x100= $2000. The 'sell' trade will be in loss ! $2000. Balance & Equity are still ~10,000.

Now close the 'buy' trade. The balance is now ~$12,000. Equity is still ~10,000.

Wait a little more, the market keeps moving up 100 pips. Now the balance is ~12,000 but the equity is only ~10,000-2,000= 8000.

It is very easy to increase the balance. It is very hard to increase the equity.

So don't look at the balance value, look at the equity value!

So the 'Growth' curve also misleading because it is based balance values to calculate the 'growth'.

The DD is a big misleading: it calculate based on the balance value (DD=Balance(1-Equity percentage)). The true DD compares the equity now to the equity peak, not to the balance.