line on chart

[werido]

Hi, what does the line going horizontally across the middle of the attached chart mean?

[NinjaTrader_Lance]

Hello,

This is the Average Profit of your trades over the period traded on.

Please let me know if I can be of further assistance.

[werido]

can you explain that? Average over what period of time, and how is that calculated. The img ,attached is for 1 year and the cumulative profit for that year is 77,620. so what does the average line then indicate, being around 56,000?

[NinjaTrader_Lance]

Hello,

It's the average over the period shown at the bottom of the chart. In this case it takes all the values of each day from 1/6/2010 to somewhere around 1/1/2011 and averages them to give you your result around 56K

Please let me know if I can be of further assistance.

[werido]

your description makes it sound like that is the average profit per day, but that's impossible. what is the formula used to make the calculation? here there are 365 days

[NinjaTrader_Lance]

Hello,

Each day has a profit.
Day one has a profit of 0.
4/9/2010 has a profit around 45K.

Add up the profit of each of these days and divide by the total number of days in this period and you will get the average line.

There are not exactly 365 days in this test as it does not include days before the start that did not have a trade and same with days after the last trade in the period.

Let me know if I can be of further assistance.

[werido]

ok, so it's the cumulative profit at the end of each day, divided by the total number of days. Thank you.