Negative Average Trade but positive Net Profit?

Author: Carova

Creation Date: 3/23/2015 9:58 AM

Wealth Lab » Wealth-Lab Developer/Pro » Negative Average Trade but positive Net Profit?

Carova

3/23/2015 9:58 AM

Can anyone explain the strange results in the following post? It is displaying a negative "Average Trade" and a very positive "Net Profit". I cannot come up with a credible explanation.

Vince

Carova

3/23/2015 9:59 AM

A screen capture,

final.jpg

One suggestion would be to run the strategy, using a set of parameters that show the strange result, then inspect the trades. Sort the trades by "Profit %" or "Profit $". My bet is that the phenomenon is related to outliers.

Eugene

3/23/2015 10:23 AM

Another explanation attempt from Can average % profit be positive while average $ profit is negative?:

QUOTE:
Average profit (%) is calculated differently. Wealth-Lab loops over each position, summing up their net % profit, then divides the sum by the count and subtracts trading costs.

So the answer is yes, it's possible.

Carova

3/23/2015 11:09 AM

Hi Len / Eugene!

Thanks for the thoughts. Len, I will try your suggestion, but as you can see from the DD%, I do not think that is the issue.

I have another run going with the same script and conditions and hope to see similar behaviors which will allow further investigations.

Vince