Strategy selection

Hi

If I OFF/ON the “use account balance button” on MM the % Return is (as in the picture1) relative to the initial capital.

But this do not return (in specific for the ON “compound” case) the real picture of a strategy quality; instead, “should” be relative to the money spent for each specific trade. About that open to other opinion.

Whatever, Is there a way to modify myself the “profit/loss% in list of trades (picture2/3) wich is used to build the Annual % Return on result table?

The 2 strat on the table are the same (just a 5% PT to exit) except for the “use account balance button” OFF/ON.

Thanks Michele

Do you mean modify the PL% formula?

Hi Thomas

I use SQ for the automated analysis and comparison of large quantities of signals and indicators to then develop the best ones.
I therefore believe it IS FUNDAMENTAL to use metrics that are real and equivalent when comparing the various strategies.

I don’t want to be misunderstood, SQ offers customization possibilities that I don’t find in other similar applications. And this listening forum is here to prove it. However, there remain some (few) incomprehensible limitations that sometimes make SQ unusable.

I’ll get to the point:
The DD used for all SQ metrics (from build to mc to optimization etc…) is the Trade Drawdown and this does NOT reflect the reality of the facts where a perfect increasing line of PL% automatically selected by SQ as the best in in reality it could turn out to be the worst roller coaster ever. I “partially” remedied this by using Open Drawdown and creating new metrics in the Databank starting from the latter.
But there is another even worse problem: PL% and DD% are calculated in relation to the Initial Capital and this causes, in particular in the case of compound MM (I mean any trade that uses a capital different from the initial one, for example proportional to the account), a distorted result over time (PL% and DD% are not comparable between the start and end of the backtest) with consequent automated selection of the WRONG strategies.
Until now I have only used fixed initial capital MM but this comes with some limitations. Instead, I believe that for a fair comparison and selection between the various signals, the full balance/account should be used as MM which, obviously, will vary along the development of the strategy itself.

If these observations are not shared by the SQ staff, I ask if there is (easily, I’m not a real programmer) the possibility of modifying the calculation of PL% and DD% in the Trade List alone so as to have a cascade of all the subsequent parameters ( databank, check, subsequent filters) that meet my needs.

Thank you for the attention.
Good work and have a good day everyone.
Michele

To be more precise:

When using as MM the initial capital (equal for every trade) the DD% is not comparable long the backtest time line; instead when MM is compounded (use account balance) this time it is the PL% that is not comparable along the backtest timeline