Welcome to the exhilarating world of the WSOT Demo League, where aspiring traders gather to showcase their trading prowess on a simulated battleground using their MT5 demo trading accounts.

Like in the WSOT Main Event, where traders compete with their live accounts, this dynamic league employs a set of key metrics to evaluate participants’ performance and create a thrilling leaderboard that tracks their progress.

Equity Performance Percentage: Reflecting Growth and Strategy

At the core of the calculation is the Equity Performance Percentage, a metric that tracks the growth of participants’ trading accounts over time.

Beginning with the starting equity, this metric adjusts for balance operations such as deposits and withdrawals. As the weeks progress, the Equity Performance Percentage evolves, offering a snapshot of each trader’s account growth trajectory.

Normalised Profit Factor: Balancing Gains and Losses

The Normalised Profit Factor is calculated by dividing total net P&L to the sum of total profits and absolute value of total losses.

It represents a measure that aims to provide a balanced assessment of a trading strategy’s performance by taking into account both profits and losses.

The formula produces a numerical result between -1 and 1, positive values indicate that the strategy’s profit outweighs its loss, with higher values suggesting a stronger profit relative to losses. Conversely, negative values suggest that losses have surpassed profits, potentially signaling areas for improvement or reevaluation of the strategy.

Sharpe Ratio: Gauging Risk-Adjusted Performance

A significant player in the evaluation is the Sharpe Ratio, a benchmark that assesses performance in the context of risk.

It’s calculated by taking the difference between the account’s return percentage and the risk-free percentage and dividing it by the standard deviation of the account’s returns. The return percentage represents the total performance of the trading account during the tournament, while the risk-free percentage is the return of a safe asset like a Government bond.

The standard deviation reflects the variability of returns over time intervals in the account’s performance during the tournament.

WSOT Score: Crafting the Composite Score

The culmination of these metrics results in the WSOT Score, an average of a trader’s rankings across Equity Performance Percentage, Normalised Profit Factor, and Sharpe Ratio.

This composite score encapsulates a trader’s overall performance, providing an effective means of ranking participants in the WSOT Demo League.

Let’s dive into an illustrative example to understand how the WSOT Score is calculated and how it determines a trader’s ranking on the leaderboard.

Trader A participates in the WSOT Demo League, demonstrating their trading skills over several weeks. At the end of the competition, their performance metrics are as follows:

• Equity Performance Percentage: 15%
• Normalised Profit Factor: 2.5
• Sharpe Ratio: 1.8

To calculate the WSOT Score, we first need to determine the trader’s rankings in each metric, for Equity Performance Percentage, Normalised Profit Factor, and Sharpe Ratio, Trader A’s rankings are 3rd, 1st, and 2nd, respectively.

Now, we add these rankings together and divide by the total number of metrics (3) to obtain the WSOT Score:

WSOT Score = (3 + 1 + 2) / 3 = 2

The WSOT Score serves as a comprehensive indicator of a trader’s overall performance, considering factors such as growth, risk-adjusted returns, and the ability to generate profits.

Weekly Updates and Crafting the Leaderboard

The excitement is kept alive through the diligent weekly updates of these metrics. Each trader’s performance is meticulously calculated, ensuring an equitable and transparent evaluation process.

As the weeks unfold, participants and observers alike can witness the fluidity of strategies, decisions, and market insights.

Armed with these metrics, the WSOT Demo League standings and leaderboard come to life. The standings visually present the top trader’s individual performance through metrics like Equity Performance Percentage, Normalised Profit Factor, Sharpe Ratio, and WSOT Score.

These individual metrics harmoniously converge to determine the participant’s rank on the leaderboard.

Every participant can see their rankings and results in their Personal Area.

The leaderboard is more than just a list; it’s a dynamic display of skill, dedication, and trading acumen.

As each participant refines their strategies and navigates market trends, their position on the leaderboard evolves, reflecting their progress and growth within the league.

Join the Journey: Celebrating Trading Excellence

The WSOT Demo League leaderboard serves as an open book of insights and inspiration, whether you’re a seasoned trader or a newcomer eager to learn. It’s a testament to hard work, decision-making prowess, and the dynamic landscape of trading.

Join us as we celebrate the traders who embrace competition, learning, and growth in the captivating world of trading excellence.

Disclaimer

The article above does not represent investment advice or an investment proposal and should not be acknowledged as so. The information beforehand does not constitute an encouragement to trade, and it does not warrant or foretell the future performance of the markets. The investor remains singly responsible for the risk of their conclusions. The analysis and remark displayed do not involve any consideration of your particular investment goals, economic situations, or requirements.