Can you please define these terms?

I’ve noticed these terms on my Forex reports/detailled statements, but I can’t figure out what these represent. These terms weren’t in the Forexpedia on this site.

How do you calculate these and what do they represent? (what is a good number vs a bad one for each.)

Profit Factor: 1.37

Expected Payoff: 17.10

Absolute Drawdown: 823.76

Maximal Drawdown: 1 644.15 (28.25%)

Relative Drawdown: 28.25% (1 644.15)

I imagine the last 3 are all related
Thanks a ton!

Edit: Just by messing around with the numbers, I figured out that Profit Factor = Gross Profit / Gross Loss.

Looks like broker specific terminology. Who is your broker? Maybe they have documentation you can look up with them. I may stand corrected.

I’m using Interbank FX, but I know at least the “drawdown” term I have seen used in the “Pip My System” blog here, as a way to keep records on how the Cowabunga system was performing

See it referenced here:
So You’ve Finished The School Of Pipsology…Now What? - Pip My System - Beginner’s Guide to Forex Trading, Free Forex Education, Learn to Trade Forex, Forex Training -

Yeah I know what drawdown is;) . I just don’t know the actual terms used with the numbers reflected. It seems to be an Interbankfx thing. They should have documentation.

Here’s an article that explains a bit about what the results of an EA mean.

What the Numbers in the Expert Testing Report Mean - MQL4 Articles

Hope that helps :slight_smile:

I do stand corrected. It is a MQL4 thing. Thanks Sweetpip:)

Actually it’s not so much an MQL thing but rather financial formulas to measure the outcome of trading results, whether they’re made mechanically or manually.

MT4 just calculates it for you after using their strategy tester, however if you know the formulas anyone can calculate them after painstakingly gathering the numbers from their own results… it’s a lot of work :eek:

I imagine other platforms with strategy testers have similar reporting capabilities.

However, how one interprets the results as good or bad is subjective :wink:

Hmmm. basically geek stuff to make you feel better about losing your pips. Now you got lost pips and a fancy report to elaborate on it. Funny how I have been making a living for the past 7 years writing code, yet have never written one line of MQL stuff or even care to trade with ea’s.

Thanks again Sweet Pip and happy sweet trading:)

Thanks that was exactly the kind of explaination I was looking for.