R-Multiple™ Profit Contribution

The R-Multiple™ Profit Contribution graph in the series shows Profit Contribution as a function of R-Multiple™s. Like the R-Multiple™ Distribution graph, it accounts for every closed trade in the simulation, both winning (green) and losing (red) trades.  

Click to Enlarge; Click to Reduce.

R-Multiple Contributions Graph

Each bar of the histogram simply represents the sum of the R-Multiple™ value of all the trades in that particular bin.

 

For instance, the R-Multiple™ Profit Contribution for the 14R bin below (which contains all trades in the range 14R < 15R) ...is 57. This comes from 4 trade with slightly more than 14 each, 4 trades x 14R = 56R.

 

As in the previous graph, the thin lines above the bars of the histogram are cumulative plots. Again, note that two scales apply. On the right vertical axis is the Total R Contribution, on the left vertical axis is the Cumulative Percentage, and they be interpreted in the same way as in the preceding example: For the test reflected in the chart below, about 60% of the total profits-in R-came from the cumulative contribution of the bins of 8R or greater.

 


Edit Time: 2/18/2022 3:35:42 PM


Topic ID#: 4007

 

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