Probability of Restoring Profitable Trading
Probability of restoring profitable trading is an index calculated based on the analysis of an iPA-Manager’s trading strategy that allows estimating the probability of restoring balance line after the drawdown.
This index is determined based on an iPA-Manager’s trading results over the last 4 weeks on each trading instrument of the iPA-Manager account (both Original and Processed). This parameter value is updated when closing each trade taking into account the following indices:
- average drawdown depth;
- average recovery time from the drawdown;
- current drawdown value.
Based on the mathematically calculated value, the color scheme is applied to iPA-Manager accounts in the Long List, iPA-Investor accounts in the Portfolio and the iPA-Investor’s Portfolio according to the following scale:
- high probability of restoring profitable trading is indicated in green color ;
- average probability of restoring profitable trading is indicated in yellow color ;
- low probability of restoring profitable trading is indicated in red color .
The color-coded indication of iPA-Manager accounts in the Long List allows determining quickly and conveniently those iPA-Managers whose trading strategies correspond the most to the iPA-Investors’ financial interests.
The example of how the color scheme is applied to iPA-Manager accounts in the Long List is shown in the figure.
