Drawdown in percent != true drawdown

[kbeary33]

Hi,

It seems like if you select "percent" in the strategy analyzer, the drawdown doesn't calculate correctly. It seems like, similar to the net profit, the drawdown is somehow extrapolated based on re-investing returns.

For example, when I calculate the drawdown in my strategy as a pure (Equity High - Current Equity), I get a drawdown of ~7%. The drawdown statistic says -99%, If you look at the cumulative profit graph (in currency) it's pretty clear that there aren't any 99% drawdowns...


To be honest, I think that one of the things that drives me crazy the most about NT is this sort of behaviour WRT compounding returns. I would much rather have it just give you the hard numbers, rather than have to guess all the time what is going on behind the scenes

Thanks

[NinjaTrader_Bertrand]

kbeary33, thanks for the post - your understanding is unfortunately correct here in that you're seeing those results in percentage mode for the reinvesting assumptions. We have an enhancement request in this area on our feedback list and I will make sure to add a vote on your behalf in as well, so it can be considered as we're working on our next major platform upgrade.

[kbeary33]

Hi Bertrand,

Thanks very much for the quick response, I appreciate it. '

I wouldn't look at this function so much as an "enhancement", as it is an "addition", since I don't think that the system currently in place really does its job at all.... (tongue in cheek here)

Would it be possible to just add a global variable that the user could select whether to compound returns or not? It seems like that would really simplify things. And, to confirm, are you looking at removing this compounding for everything? Or just this particular instance?

Thanks!

[NinjaTrader_Bertrand]

kbeary33, thanks again for voicing your thoughts on this item - I can understand your perspective well and will explicitly add the proposal to offer a user bool for compounding or not offering more flexibility for our users this way. I cannot confirm any features / changes at this time or provide an ETA, but the suggestion tracked entails the global use of percentage mode where reinvesting influences on metrics come into play.

[kbeary33]

Hi Bertrand,

Thanks very much, I appreciate it!