Deposit

In trading, a deposit is a sum of money deposited by a market participant to his trading account with a broker for independent trading on stock exchanges.

The amount of funds on the account deposit increases in case of profitable trades or decreases in case of unprofitable ones.

The total amount of the deposit (DEPO) for a certain period of testing a strategy is calculated by the formula:

where:

Close (i) – a closing price of the trade;

Open (i) – an opening price of the trade;

i – a strategy signal to enter the market;

Accuracy – precise number of decimal places in the quotes of a trading symbol.