How to backtest with trading view indicator backtest data excel (2)

- Find the highest point and the highest drop and implement it as a chart

Last time I was going to show you how to make data analysis as simple as possible from this! Last time, we calculated the return and cumulative return. This time, we will calculate the highest point and the highest drop and implement it as a chart!

                                        

Peak is a way to compare the highest return and the cumulative return to get only the larger value.

The formula used here is MAX. =MAX(maximum return , cumulative return).

 

Double-click the green square in the lower right corner of the box.

Finding the highest score is complete!

 

Then we find the highest drop.

This is to calculate the difference between the peak return and the cumulative return.

Also known as MAXIMUM DRAWDOWN (MDD)!

Before we can find the MDD, we need to find the drop first.

The way to find it is (Cumulative Return - Peak) / Peak.

 

Then, double-click the square box in the lower right corner and drag it again.

 

Click % at the top for easy viewing to convert to a percentage

Click the decimal point up to 4 digits!

 

It's really neat, isn't it ?~

 

Then use the formula MIN for the highest drop!

=MIN (all falls)

 

Calculation done!

You can see that this strategy is down -16.58% in the worst case!

 

Now, let's drag the cumulative return and the peak together and visualize it as a chart!

 

Please click on the featured chart

 

Click the line and confirm!

 

Voila! You can see the profit curve and the decline compared to the peak.

 

Next, let's visualize the fall data!

 

Wala! Based on the drop data, you can see the highest drop and what the average number is.

 

It's not very difficult, is it~?

In the next lesson, we will learn how to compare the performance of buying and holding and trading with a trading bot!