TRADE PROFIT/LOSS

This represents the Profit/Loss for the trade and that Profit/Loss is realized in our account only on Exit date of the trade. 


If trade is closed,

For Long trades, (EXIT PRICE- ENTRY PRICE) * TRADE SIZE 
For Short trades, (ENTRY PRICE - EXIT PRICE) * TRADE SIZE


NET PROFIT

This is the total of the Profit/Loss for all the closed trades during the backtesting window.


BUY AND HOLD PROFIT

This is the profit/loss when we buy the shares at the beginning of the testing window and not trade at all. We take the current price and calculate the profit. 


= (PRICE AT END OF TESTING WINDOW - CURRENT LATEST PRICE) * TRADE SIZE


WIN RATE

= # of Winning Trades / Total # of Closed Trades


Winning trade is when Profit/Loss>=0. Losing trade is when Profit/Loss < 0


GROSS PROFIT

=Sum of Profit/Loss for all Winning Trades during the backtesting window


GROSS LOSS

= Absolute value of (Sum of Profit/Loss for all Losing Trades during the backtesting window)


PROFIT FACTOR

= (Gross Profit/Gross Loss)


AVG TRADE PROFIT/LOSS

=Average of Profit/Loss for all closed Trades during the backtesting window


AVG WINNING TRADE

=Average of Profit/Loss for winningTrades during the backtesting window


AVG LOSINGTRADE

=Absolute value (Average of Profit/Loss for losing Trades during the backtesting window)


RATIO (AVG WIN / AVG LOSS)

=AVG. WINNING TRADE / AVG. LOSING TRADE


RUN-UP

Run Up represents the maximum profit you would have taken during the trade. 


For Long trades, (MAX HIGH - TRADE ENTRY PRICE) * TRADE SIZE

In a Long trade, MAX HIGH is the maximum the price would have gone up. (Price going up is good for long trades). 



For short trades, (TRADE ENTRY PRICE - MIN LOW) * TRADE SIZE

For Short trade, MIN LOW is the minimum price would have decreased to. (Price going down is good for Short trades.)


DRAW-DOWN

Draw down represents the maximum loss you would have taken during the trade. 


For short trades, (MAX HIGH - TRADE ENTRY PRICE,) * TRADE SIZE

For short trades, MAX HIGH is the maximum the price would have gone up. (Price going up is bad for short trades). 



For Long trades, (TRADE ENTRY PRICE - MIN LOW) * TRADE SIZE

For long trade, MIN LOW is the minimum price would have decreased to. (Price going down is bad for long trades.)"


# OF CANDLES


Number of trading days/candles in the trade. It represents the duration of the trade, from entry day to exit day. This is not the same as calendar days, as we don’t have trading on all days. 


MARGIN CALLS


This is only applicable for short trades in the template. If the Margin Required > Account Balance, then a margin call is flagged. 


We assume that if the trading initial capital is 10,000 then the account balance is 20,000 (100%more) to cover for any losses during short trading. When the losses are more than the initial capital, the margin call will be true, as the account cannot pay for the losses.


Margin Required: This represents the money that is needed in your account to fund for all the shares in the trade. If the HIGH price keeps going up, during a short trade, your loss keeps going up.  Your account balance should be enough to pay for the losses. 


Margin Required = (TRADING SIZE * HIGH PRICE)


Equity Value


If (Current Equity + Init Capital) < Margin Required, then margin call is True. 


Current Equity


Initial Capital + Cumulative Profit/Loss until now + (Latest Open price - Trade Entry price) * Trade Size * -1