Trading Blox™ Graphs

Trading Blox™ includes five different graphs. The following graphs are full-sized graphs produced during an actual test run of Trading Blox™:

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The Logarithmic Equity Graph shows both the Total Equity (which includes open trade equity) and the Closed Equity (which includes only equity from closed out trades) plotted on a logarithmic scale graph. This graph is the best way to examine the equity curve for tests that last more than a few years. Other linear scale graphs lose resolution in the earlier years, (see the Linear Equity Graph below).

The Linear Equity Graph with Drawdowns shows both the Total Equity and the Closed Equity plotted on a linear scale graph. Because linear scale graphs lose resolution in the earlier years this graph includes a plot of the drawdowns in percentage terms plotted just below the equity portion of the graph.

The Risk Profile Graph shows both the Total Equity and Closed Equity risk plotted on a linear scale graph. Total Equity Risk is the percentage drop that would occur if the market moves to force and exit of all stops. Closed Equity Risk is positive only when the average stop would result in a loss. When Total Equity includes significant locked-in profits, the Closed Equity Risk goes to zero because if the market moves to the stops it will result in a winning trade which will increase Closed Trade Equity rather than reduce it.

The R-Multiple Distribution Graph shows the distribution of trades in terms of their entry Risk. A trade with an R-Multiple of 1 would indicate a profit that was exactly equal to the entry risk. R-Multiples are convenient for comparing trades over time and between different systems. For example, the above graphs shows that there were 53 trades that had an R-Multiple between 2R and 3R, which represented approximately 13% of all the trades.

The R-Multiple Profit Contribution Graph shows the profit contribution of trades in terms of their entry Risk. While the R-Multiple Distribution Graph shows the number of trades, the R-Multiple Profit Contribution Graph shows the total profit contribution for those trades. For example, 5 trades at 10R would contribute 50R in profit. As you can see above, the higher R trades contribute a significant portion of the total profit even though they are relatively infrequent.