{"id":4194,"date":"2024-12-21T23:59:45","date_gmt":"2024-12-21T22:59:45","guid":{"rendered":"https:\/\/allthemillions.com\/explanation\/"},"modified":"2025-01-29T22:55:04","modified_gmt":"2025-01-29T21:55:04","slug":"explanation","status":"publish","type":"page","link":"https:\/\/allthemillions.com\/en\/explanation\/","title":{"rendered":"Explanation"},"content":{"rendered":"\t\t
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The analysis is based on the results of a test run from 01.01.2020 to 2024.12.2020 using ChatGTP<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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1. Profitability<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Total net profit: $722,491.92 – Strong total profit for the period.
Gross profit: $1,537,769.30 vs. gross loss: $815,277.38 – The profit factor of 1.89 means that for every dollar lost, the bot makes a profit of $1.89. This is fair, as a profit factor greater than 1.5 is generally considered profitable.
Expected profit: $143.04 – The average profit per trade is positive, indicating that the strategy has been consistently profitable over time.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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2. Risk Management<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Declines:
Balance sheet decline maximum (absolute): $59,050.95 (19.22%)
Equity decline maximum (absolute): $137,312.27 (24.24%)
These declines are moderate and acceptable for high-yield schemes, but indicate that there are periods of significant risk. The 34.32% relative capital decline is on the higher side and could be improved for long-term sustainability.
Recovery factor: 5.26 – This is excellent. It indicates that the stick is effective in recovering losses, as it generates 5.26 times the maximum return as profit.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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3. Efficiency<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Sharpe ratio: 1.50 – Strong Sharpe ratio, indicating a good risk-adjusted return. Values above 1.0 are considered efficient.
AHPR and GHPR: 0.04% per trader – This is a modest growth rate, but the consistency between AHPR and GHPR reflects the low volatility of trading performance.
Linear regression correlation (LR correlation): 0.92 – Indicates a strong positive trend in capital growth over time.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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4. Profit ratio<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Winning trades: 70.92% – High win rate, which is consistent with the bot’s ability to make profits.
Average win vs. loss trades:
$429.30
Average loss: $-551.70
The bot wins more often, but loses more per losing trade on average. This suggests that it relies on a high win rate to maintain profitability, which can be risky in volatile conditions.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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5. Trade statistics<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Total trades: 5,051 – Sample size sufficient for reliable statistics.
Biggest winning trade: $6,772.42 vs. Biggest losing trade: $3,019.73 – Biggest loss is smaller than the biggest win, which is a good sign.
Average consecutive wins\/losses: 7 wins vs. 3 losses – This indicates that traders tend to make a series of winning trades.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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