Back Test Cumulated Profit

[pistolpete]

When I am running a back test occasionally I will have a negative cumulated profit as well as a negative drawdown but Total Net Profit will be profitable.
Any idea why that is?
Thanks
Pete

[NinjaTrader_JoshP]

Guess I am not sure what you mean. Please send a screenshot? Thank you.

[pistolpete]

Guess I am not sure what you mean. Please send a screenshot? Thank you.

Total Net profit - $360.00
Gross Profit - $1146.00
Gross Loss - -$786.00
Cumulated Profit is -6.35%
Drawdown -11.14%
Percent Profitable 43.75%

Could you explain how my total net profit is positive but my cumulated profit is negative?
Thanks
Pete

[NinjaTrader_JoshP]

The equation for cumulative profit is:

PRODUCT(1 + profit / entry price) of all trades - 1

Only way to tell would be to evaluate the math by hand.

[pistolpete]

I just read over that and it looks confusing
Total Net profit $360.00
Gross Profit $1146.00
Gross Loss -$786.00
Cumulated Profit is -6.35%
Drawdown -11.14%
Percent Profitable 43.75%

[pistolpete]

So is it possible to have a negative cumulated profit but a positive total net profit?

[NinjaTrader_JoshP]

Please provide a reference we can use to reproduce. Generally you should not be able to have cumulative profit as negative but positive profits.

[pistolpete]

I forwarded on the emailed image.

[NinjaTrader_JoshP]

Please attach the strategy itself along with steps we can use to try and reproduce to see what may or may not be the cause.

Please also try with SampleMACrossOver.

[KrisS]

Everyone,

My screen capture attached in this thread yesterday seems to highlight this issue well:

http://www.ninjatrader-support2.com/vb/showthread.php?t=19158

[NinjaTrader_JoshP]

KrisS,

On a per trade basis this is absolutely possible. Cumulative profit could be negative while the trade profit could be positive.

[KrisS]

Josh,

The accumulated pofit in my earlier example is clearly not correct.

Attached is another example with more than one trade. While the strategies are doing relatively well, the real Accumulated Profit is a small fraction of what is indicated.

I have also observed the same phenomenon as pistolpete.

I think accumulated profit has some opportunity for improvement in NT7. Please consider our input.

[NinjaTrader_JoshP]

KrisS,

We would like a reproducible scenario to investigate. Can you please provide a generic strategy that behaves the way you have seen? We were unable to reproduce on our machines. Thank you.

[pistolpete]

Back Test Cumulated Profit

Can you please take a look at this. I repaired my DB and did the same test and the results that came up said that I had a draw down as well as a negative cumulated profit but I had a net profit of +$266, a gross profit of $1255 and a gross loss of $989. Those numbers don't add up, how can I have a negative cumulated profit but a positive total net.

[NinjaTrader_JoshP]

Guys,

Without reproducible scenarios there is little we can do here. We are unable to reproduce on our end. Please provide a reference sample that illustrates the issue along with steps we can use to reproduce. Thank you.