In the Strategy Report, the Outlier definition currently uses the Average trade and the deviation from it.
I do not understand how this is still the case at V12 of MC when it is clearly wrong.
To discover outlier trades, trades that contribute a greater profit or loss than normal, one MUST use Average WIN and Average LOSS separately.
For those who hadn't given it much thought, here is a quick comparison to highlight how critical it is to get it right.
System 1 has only small wins ($100) and losses ($100)
System 2 has only large wins ($1000) and losses ($1000).
Let's assume both have exactly the same Average Trade of $100.
Currently MC determines an Outlier by reference to the $100 Avg trade. So clearly System 2 has 100% of its trades as outliers, and System 1 has NONE.
CLEARLY ABSURD. Both System 1 and System 2 has precisely ZERO OUTLIERS. Every single trade is precisely in line with the rules for taking a profit or loss.
Traders want to know what % and how many trades resulted in such large profits, that a single trade might have provided way too much of the total profit.
In other words we want to compare trade outcomes to the average trade outcome, not of all trades, but only WINS or only LOSSES. How does our winning trade compare to the average winning trade.
So in our example System 1 made $100 on every winning trade. ZERO outliers. System 2 made $1000 on every trade. ZERO outliers. Since the average win = $1000. But if we use Average TRADE of $100, then every win of $1000 is an outlier.
I hope my explanation isn't too confusing and in fact obvious. It is extraordinary that such a grave error has not been detected back in V1 or V2 of MC or whenever this functionality was added.
Please VOTE to have this corrected. Anyone who does backtesting MUST vote on this issue to be corrected.
You can find Outlier data under the Menu View/Strategy Performance Report/Trade Analysis/Outliers.
Note that it refers to 'Avg Trade'. This needs to be split into Avg WIN and Avg LOSS, along with separate Standard Deviation calculations based on each of those 2 numbers.