Dashboard for Trading System Analysis

 

Provides general statistics for your account, where you can see whether your trading is profitable or not along with other information.

In this section, you can evaluate the effectiveness of your trading over different timeframes or the overall results of your trading activity. Moreover, you can use filters that allow you to select an asset, a timeframe and several other criteria. Through this, you can determine how trading strategies work in different scenarios.

Your Dashboard shows the following statistics:

  • Deposits – the sum of all the deposits
  • Balance – the sum of deposits and profit minus withdrawals and losses
  • Gain – your account growth as a percentage. The gain is calculated using the Time-Weighted Return (TWR) formula that measures the performance of a dollar invested in they system since inception. Its distinguishing characteristic is that cash inflows, cash outflows and amounts invested over different time periods have no impact on the return. Each trade’s return (profit divided by the balance at the open of the trade) is chained to the other returns in order to get a compounded yield.
    • The formula is: ((profit 1 / balance at trade 1 open + 1) x (profit 2 / balance at trade 2 open + 1) x ….. x (profit n / balance at trade n open + 1) – 1) x 100
  • Max Drawdown – After each trade the Current DrawDown (CDD) is calculated as the difference between the historical highest balance minus the current balance removing the effects of withdrawals.
    • The formula is: CCD = highest_historical_balance – current_balance + account_withdrawls. If CCD is greater than Maximal Drawdown, then the new Maximal Drawdown = CCD.
  • Withdrawals – the sum of withdrawals
  • Swap – rollover interest that is earned or paid for holding positions
  • Daily – average daily deposit growth
  • Monthly – average monthly deposit growth

Therefore, it only takes you 2-3 seconds to understand if your trading strategy is profitable or not.

Additionally, your dashboard shows many other important statistics:

Statistics for forex system analysis

Main Stats

  • Trades, the total number of trades carried out
  • Profitability, the percentage of positive trades
  • Pips, the total number of pips gained or lost
  • Average win, the number of pips or money gained per trade
  • Average loss, the number of pips or money lost per trade
  • Longs won, the percentage of positive long trades
  • Shorts won, the percentage of positive short trades
  • Profit factor, gross profit divided by gross loss
  • Expectancy, the amount of pips and money won or lost in each trade on average
  • Best Trade (pips), the maximum amount of pips won in one trade
  • Worst Trade (pips), the maximum amount of pips lost in one trade
  • Best Trade, the maximum amount of money won in one trade
  • Commissions, the total amount of money the broker charged for services
  • Trade Length, the average time from the open to the close of a trade

Return Stats

  • Monthly, gain in the last month
  • Quarter, gain in the last quarter
  • Year to Date, gain from the start of the current year
  • 1 year, gain in the last 12 months
  • 2 year, gain in the last 24 months
  • 5 year, gain in the last 60 months

Ratio Stats

  • Sharpe ratio, discounts the excess return of a portfolio above a target threshold by the volatility of downside returns, and the formula to calculate it is:
    • sortino_ratio = [ (average_returns * 252) – (risk_free_ratio) ] / returns_lower_partial_moment, where risk_free_ratio is CBOE Interest Rate 10 Year T No (^TNX) and the lower partial moment uses order 2
  • Sortino ratio, discounts the expected excess returns of a portfolio by the volatility of the returns, and the formula to calculate it is:
    • sharpe_ratio = [ (average_returns * 252) – (risk_free_ratio) ]  / standard deviation, where risk_free_ratio is CBOE Interest Rate 10 Year T No (^TNX)
  • Standard deviation, measures the historical variance (average of the squared deviations) of the returns from the mean return over the selected period of time.

You can find more information about this ratios and its calculations here

Finally, the Dashboard section also has the following other tabs: Profit, Balance/Equity, Growth and Drawdown. They provide charts with a visual analysis of trading systems.

 

Profit

 

This chart shows your account’s profit. It has a two-part chart. The top area shows changes in profit after each trade. The bottom area shows the size of each trade in lots. This chart is practical because you can see how much money you have earned as well as analyze how your profit increases.

Profit after forex trading history analysis

 

Balance/Equity

 

This chart shows the amount of money in your account and the real value of your portfolio over your trading history.  At the bottom of the chart is the result for each trade in terms of profit or loss.

Balance and Equity for forex portfolio trading systems

 

Growth

 

This chart is similar to the profit one, but this time it shows the percentage growth of the account in relation to the balance. At the bottom of the chart is the size of each trade in lots.

Growth for the forex trading system related to balance in percentage

 

Drawdown

 

The drawdown chart shows how much the equity has declined since its most recent high. When the drawdown is at 0%, the system is making new highs, and as soon as it turns negative, it starts to show the extent of losses since that recent high.

Drawdown is probably the most important metric in a trading system, since it gives insights on what position management we should use with each system. If you want to have a more accurate measurement of the drawdown for a system, you can check the Risk tab, where a distribution of the drawdown is calculated.

 

Drawdown of the account for the forex trading system analysis