Blue horizontal line on cumulative profit graph

[:::grimReaper:::]

What does it represent? The average of my cumulative profit as seen on the last day?

Is it possible to remove that?

Thanks!

[NinjaTrader_AdamP]

grimreaper,

Yes, that is the average cumulative profit. Unfortunately there is no way to remove it.

[Camdo]

What is the formula for average cumulative profit?
If cumulative profit is summed and divided by the number of trades, it does not equal the level of the blue line on the graph.
See attached: blue line = 71, but average of cum profit column = 232.96

[NinjaTrader_Jason]

You can find the formula for cumulative profit at the link below.

http://www.ninjatrader.com/support/helpGuides/nt7/statistics_definitions.htm

[Camdo]

The question is "What is the formula for "Average Cumulative Profit"?
That definition is not listed in the link you posted.
Average cumulative profit is the blue horizontal line drawn on the cumulative profit performance graph.

[NinjaTrader_Kyle]

Hello Camdo,

Average cumulative profit is calculated using the formula for cumulative profit divided by the total number of trades.

If other questions come up which I could assist you with please let me know.

[Camdo]

Unfortunately that is not the case as the spreadsheet shows in post #3.
As I understand your answer:
average cumulative profit = (sum of cumulative profits shown in cumulative profit column) / # trades

[sledge]

Unfortunately that is not the case as the spreadsheet shows in post #3.
As I understand your answer:
average cumulative profit = (sum of cumulative profits shown in cumulative profit column) / # trades

What?

I typed in all those #s into a spreadsheet and sum'd them, and then divided the total # of trades and it = the avg

The graph shows daily profit.

[Camdo]

The graph shows daily profit.

We need to back up a bit here.
The purpose of this thread is
1. Define what the horizontal blue line is on the cumulative profit graph.
2. State the formula for the horizontal blue line.

[NinjaTrader_Brandon]

Hello Camdo,

Thanks for your reply.

This line is the average.

The following is the math used to calculate this.
(avgVal - yMinVal) / Math.Max(0.000001, yMaxVal - yMinVal))
Where avgVal is the Average of the Plots that it sees

[Camdo]

(avgVal - yMinVal) / Math.Max(0.000001, yMaxVal - yMinVal))
Where avgVal is the Average of the Plots that it sees

This is the formula for the line location on the chat relative to the chart boundaries.

The item of interest is avgVal (= the Average of the Plots that it sees)"
What is the formula for AvgVal?
Please show a calculation example using the data shown in post #3.

[NinjaTrader_Brandon]

Hello Camdo,

Thanks for your reply.

Here is an easy way to calculate this.
If you look at graph posted we can see 3 plot points for the diagonal lines; $0, -$196.1,-$17.36
This brings a total of -$213.46
-$213.46 / 3 = -$71.15
This gives us the -$71.15 horizontal plot on the Cumulative Profit graph