Trade performance - ticks vs currency

[HTubman]

How is it possible for Profit per Month to be $2,188 while also being -4.518 ticks? Total Net profit was $287.
Thanks in advance for any insight you can provide.

[NinjaTrader_Clayton]

Hello HTubman,

Thank you for the message.

It is possible for Profit per Month to be positive (e.g., $2,188) while the Ticks per Month are negative (e.g., -4.518 ticks) due to the different ways these metrics are calculated and what they represent.

• Profit per Month is a monetary value and reflects the cumulative profit over a period, considering factors such as trade size, instrument value, and any reinvestments of profits. It is calculated based on the cumulative profit, scaled by the number of days in a month, and can include the effects of leverage, compounding, and any transaction costs.
• Ticks per Month, on the other hand, measures the net gain or loss in ticks (the smallest price movement for an instrument) over the same period. A negative value indicates that on average, the trades have lost ticks. However, even with a negative ticks metric, the overall monetary profit can still be positive if the profitable trades were larger in size or if they were executed on instruments with higher tick values.

Thus, the strategy might be losing in terms of the number of ticks but still generating a net profit due to factors such as trade size, different tick values across trades, or the specifics of how profits are calculated for the strategy.

Please let us know if we may provide any further assistance.