How is this possible?

[NGorodzhiy]

I back tested my strategy with an account size of $10,000. I will include 2 stocks as an example to my question.

AKAM
total net profit of: $28,443
cumulative profit: 155.88%

MU
total net profit: $27,235
cumulative profit: 1,049%

How is it possible that MU has a higher cumulative profit percentage but a smaller net profit than AKAM which has a much lower cumulative profit?

[NinjaTrader_PatrickH]

Hello NGorodzhiy,

Thank you for your post.

May we see the results of the backtests? Please attach a screenshot to your response with a view of both the AKAM and MU tests.

[NGorodzhiy]

I attached a screenshot.

[NGorodzhiy]

It seems that the file is too large. What is it that you want to see?

[NinjaTrader_PatrickH]

Hello NGorodzhiy,

We will need the summary screen of both tests.

[NGorodzhiy]

I have attached the results.

[NinjaTrader_PatrickH]

Hello NGorodzhiy,

Thank you for your response.

The Cumulative Profit is calculated as PRODUCT(1 + profit / entry price) of all trades - 1. This is not the same as Total Net Profit which is the Gross Profit - Gross Loss.

For information on the Statistics please visit the following link: http://www.ninjatrader.com/support/h...efinitions.htm

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

[NGorodzhiy]

My question is not what is the difference. My question is: How is it possible that MU has a higher cumulative profit percentage but a smaller net profit than AKAM which has a much lower cumulative profit?

[NinjaTrader_PatrickH]

Hello NGorodzhiy,

Thank you for your response.

You can calculate the values manually to see the result and compare for that information.