For traders, risk management is a crucial aspect of successful trading. Understanding the risk involved in trading is key to minimizing losses and maximizing profits. This is where risk reporting comes in. Risk reporting provides traders with metrics and data to help them analyze and understand their trading activity and make informed decisions. The AISHE-System is a risk reporting tool that provides traders with detailed metrics to help them monitor their trading activity and minimize their risks.
AISHE System (Daily Report)
The AISHE-System provides several key metrics that traders can use to monitor their trading activity and make informed decisions. These metrics include Total Net Profit, Gross Profit, Gross Loss, Profit Factor, Expected Payoff, Absolute Drawdown, Maximal Drawdown, Relative Drawdown, Total Trades, Short Positions (won %), Long Positions (won %), Profit Trades (% of total), Loss Trades (% of total), Largest Profit Trade, Largest Loss Trade, Average Profit Trade, Average Loss Trade, Maximum Consecutive Wins ($), and Maximum Consecutive Losses ($).
Total Net Profit is the overall financial result of all trades made in a trading account. It provides traders with a clear indication of their overall profitability. Gross Profit and Gross Loss are crucial metrics for understanding the profitability of each individual trade. Profit Factor is the ratio between the gross profit and gross loss, expressed as a percentage, and provides insight into the trader's overall profitability. Expected Payoff is a statistically calculated index that represents the average profit/loss factor of a trade and can be used to estimate the expected profit or loss from the next trade. Absolute Drawdown represents the largest loss a trading account has experienced in terms of money and is essential for understanding the worst-case scenario. Maximal Drawdown represents the maximum loss of the local maximum in the deposit currency and in percentage of the deposit and is essential for understanding the overall risk of the trading strategy. Relative Drawdown provides a more detailed understanding of the overall risk of the trading strategy.
Total Trades is the total number of trade positions that were opened and closed during the trading period and is essential for understanding the trading activity of the account. Short Positions (won %) and Long Positions (won %) show the percentage of profitable short and long positions, respectively. Profit Trades (% of total) and Loss Trades (% of total) provide a clear indication of the trader's overall profitability and risk, respectively. Largest Profit Trade and Largest Loss Trade do not necessarily reflect the overall performance of the trading strategy but are important metrics to consider. Average Profit Trade and Average Loss Trade are crucial metrics for understanding the profitability and risk of the trading strategy. Maximum Consecutive Wins ($) and Maximum Consecutive Losses ($) provide insight into the longest winning streak of trades and the longest losing streak of trades, respectively.
The AISHE-System provides traders with a comprehensive set of metrics to help them understand their trading activity and make informed decisions. By monitoring these metrics, traders can adjust their trading strategies to minimize risks and maximize profits. With the AISHE-System, traders can take control of their trading activity and achieve success in the world of trading.
Total Net Profit:
This is the overall financial result of all trades made in your trading account. It represents the difference between the gross profit (total profit made from all profitable trades) and the gross loss (total loss incurred from all unprofitable trades).
Gross Profit:
This field shows the sum of all profits made from your trades, in terms of money. It does not take into account the costs associated with making those trades.
Gross Loss:
This field shows the sum of all losses incurred from your trades, in terms of money.
Profit Factor:
This field is the ratio between the gross profit and gross loss, expressed as a percentage. If the value is 100%, it means that the gross profit is equal to the gross loss.
Expected Payoff:
This field is a statistically calculated index that represents the average profit/loss factor of a trade. It can be used to estimate the expected profit or loss from the next trade.
Absolute Drawdown:
This field represents the largest loss your account has experienced, in terms of money. It is measured from the highest point of your account balance to the lowest point.
Maximal Drawdown:
This field represents the maximum loss of the local maximum in the deposit currency and in per cent of the deposit. It measures the largest percentage loss from the highest point of your account balance to the lowest point.
Relative Drawdown:
This field represents the maximum loss in percentage of the maximum balance value and its corresponding money value. It is calculated as the percentage difference between the highest and lowest points of your account balance.
Total Trades:
This field shows the total number of trade positions that were opened and closed during the trading period.
Short Positions (won %):
This field shows the number of short positions taken and the percentage of them that were profitable. Short positions are taken when the trader believes that the asset's price will decrease.
Long Positions (won %):
This refers to the total number of long positions taken and the percentage of those positions that were profitable. A long position is when an investor buys a security with the expectation that it will increase in value over time.
Profit Trades (% of total):
This is the percentage of total trades that resulted in a profit. For example, if an investor executed 100 trades and 70 of them were profitable, the profit trades percentage would be 70%.
Loss Trades (% of total):
This is the percentage of total trades that resulted in a loss. Using the example above, if 30 of the 100 trades were unprofitable, the loss trades percentage would be 30%.
Largest Profit Trade:
This is the largest profit earned from a single trade. It is important to note that this does not necessarily reflect the profitability of the overall trading strategy.
Largest Loss Trade:
This is the largest loss incurred from a single trade. Like the largest profit trade, it does not necessarily reflect the overall performance of the trading strategy.
Average Profit Trade:
This is the average profit earned per profitable trade. To calculate this, you would add up all the profits earned from profitable trades and divide by the number of profitable trades.
Average Loss Trade:
This is the average loss incurred per unprofitable trade. To calculate this, you would add up all the losses incurred from unprofitable trades and divide by the number of unprofitable trades.
Maximum Consecutive Wins ($):
This refers to the longest winning streak of trades and the total profit earned during that streak. For example, if an investor executed 10 trades and the first 7 trades were profitable, the maximum consecutive wins would be 7 trades and the dollar amount of profit earned during those 7 trades.
Maximum Consecutive Losses ($):
This refers to the longest losing streak of trades and the total loss incurred during that streak. For example, if an investor executed 10 trades and the first 5 trades were unprofitable, the maximum consecutive losses would be 5 trades and the dollar amount of loss incurred during those 5 trades.
Maximal Consecutive Profit (Count):
This metric is useful for determining the maximum profit that can be obtained from a series of consecutive profitable trades, as well as the number of trades that were profitable during this period. For example, if a trader has a string of 10 profitable trades in a row, with the first trade resulting in a profit of $100 and the last trade resulting in a profit of $1000, then the maximal consecutive profit would be $1000 and the count would be 10.
Maximal Consecutive Loss (Count):
This metric is similar to the maximal consecutive profit, but instead measures the maximum loss that can be obtained from a series of consecutive unprofitable trades, as well as the number of trades that were unprofitable during this period. For example, if a trader has a string of 8 unprofitable trades in a row, with the first trade resulting in a loss of $50 and the last trade resulting
This article discusses the importance of risk reporting in trading systems and introduces the AISHE-System, which provides various metrics to help traders monitor their trading activity and make informed decisions. The key metrics include total net profit, gross profit, gross loss, profit factor, expected payoff, absolute drawdown, maximal drawdown, relative drawdown, total trades, short and long positions (won %), profit trades (% of total), loss trades (% of total), largest profit trade, largest loss trade, average profit trade, average loss trade, and maximum consecutive wins and losses. These metrics provide insight into the trader's overall profitability, risk, and trading strategy.