Reading a track record

How to read any strategy’s published results, ours included: annualised return, monthly returns, drawdown, profit factor, deposits and Myfxbook – in six lessons.

1. 01Total gain versus annualised returnThe headline number on any track record is the one most often misread. Here is how to turn it into something you can compare.
2. 02Monthly returnsAn average monthly return hides the one thing that decides whether you stay invested: how the months are spread.
3. 03Maximum drawdownThe largest fall from a peak predicts better than any return figure whether you will still be invested a year from now.
4. 04Profit factor and expectancyA high win rate is not an edge. Two numbers explain why, and they are both on every serious track record.
5. 05Account age and depositsHow money moving in and out of an account can flatter or distort its published curve, and why a young account proves very little.
6. 06Reading Myfxbook criticallyWhat a verified badge does and does not verify, and the five checks to run before believing any track record, including ours.