Strategy Analyzer - Cumulative Net Profit - Still not getting it...

[fernlicht]

Hello Forum,

I've developed a strategy and I think after reading all the documentation about the strategy analyzer,
I still not get the difference betweem
- Total Net Profit / Percentage
- Total Net Profit / Cash
It gives me total different numbers and I think I'm too stupid to get it after all...
Could somebody explain it to me in a very simple way, especially the difference between cash and percent.
(and yes I've read the desctiption about cumulative profit percent and still not get it)

Please take a look at the attached pictures:
My strategy is EURUSD and makes on a 100k account 19.5k cash profit p.a., which is 19.5% in my math.
but when i look up the percentage i get 159.5% profit. I'm lost, sorry... btw(it is a scale in scale out strategy)

Ever hint is welcome to pull me into the light

Thanks

[NinjaTrader_Kate]

Hello fernlicht,

Total Net Profit is calculated differently depending on which you choose:

Currency or Points	= SUM(gross profit and gross loss) of all trades
Percentage	= SUM((1 + gross profit in percent) * ( 1 + gross loss in percent) - 1) of all trades

So to understand that, we need to understand how profit is calculated:

• (exit price – entry price) for long trades
• (entry price – exit price) for short trades

This is calculated differently depending on if you're using Currency or Percent:

Currency	= Rate of Exit * Profit in Points * Lot Size of Exit * Point Value of Exit
Percent	= (Profit in Points * Lot Size of Entry) / (Quantity * Higher of .01 or Absolute Value of Entry Price)

Now that we know how these are calculated, we can then look at gross profit and gross loss:

Gross Profit is calculated as below:

Currency or Points	= SUM(profit * quantity) of all winning trades
Percentage	= SUM((1 + Current gross profit in percent) * ( 1 + gross profit in percent) - 1) of all winning trades

Gross Loss is calculated similarly:

Currency or Points	SUM(profit * quantity) of all losing trades
Percentage	SUM((1 + Current gross loss in percent) * ( 1 + gross loss in percent) - 1) of all losing trades

Hopefully these calculations assist in making more sense of those results.

Please let us know if we may be of further assistance to you.

[fernlicht]

Hi, Sorry to come back again on the topic. I do not hold a master in math and finance
could you explain it without the formulas, because one can find this on the documentation anyways
i try to describe it and you can maybe set me on the right path.

ok I start with 100k account
after a year it makes 10k profit(so far so good) on 1k trades each
if I switch to percentage it the analyser shows 85%
hm... would The percentage relate to something like, if would have traded each trade with the total amount of available cash?
becuase lets say the 1st 10 trades would have make 3k so the next trade would be on 103k total. So every trade would take a slightly bigger position?
sorry to bother you again...

[NinjaTrader_Kate]

Hello fernlicht,

Thank you for your note.

The percentage is calculated with the above formulas, not whether you would have traded each trade with the total amount of available cash. To illustrate we would need a screenshot of the trades you're looking at to walk through.

Please let us know if we may be of further assistance to you.