Chapter 12 · Glossary
12.1Glossary
| Term | Meaning |
|---|---|
| Balance | Account balance from closed trades. |
| Companion | Windows app reading logged-in MT5 terminals without credentials (beta). |
| Confidence interval (95%) | Range containing the true value with 95% confidence; shows uncertainty. |
| Consistency rule | Firm rule: the best day may be at most a share of total profit. |
| Contract size | Amount of the underlying per lot; needed for PnL. |
| Copy trading | Same trades on several accounts; observe firm rules. |
| Daily loss limit | Maximum loss allowed in one day by firm rule. |
| Drawdown | Decline from the previous high. |
| Edge | Supported advantage: expected value whose interval excludes 0. |
| Effective start | An account's start date or first trade, whichever is earlier. |
| Entry mode | Guided planning of a trade before entry. |
| Equity | Balance plus floating profit/loss of open positions. |
| Expectancy | Average net result per trade. |
| Feature | Property of a trade (e.g. session, weekday, your own feature). |
| Inbox | Trades without a plan or with an ambiguous match, to assign. |
| Investor password | Read-only password of an MT5 account, without trading rights. |
| Live buffer | Distance to daily/max loss as amount, % of limit and avg losing trades. |
| Lock window | Time window around news in which your firm restricts trading. |
| Master password | Password with trading rights – never use it for TradersEdge. |
| Max drawdown | Largest decline from a high in the period. |
| Max loss | Level the account must never fall below overall. |
| Monte Carlo | Simulation of many possible paths from your own trading days. |
| Net PnL | Result after commission, fees and swap. |
| News edge | Your results around specific economic events. |
| Phase (challenge, verification, funded) | Stages of a prop program; funded = funded account. |
| Profit factor | Gross profit ÷ gross loss. |
| Profit target | Profit goal of a phase in % of starting capital. |
| Quiet window | Time in London/New York without red or orange events. |
| R / R-multiple | A trade's result divided by its risk (stop loss or risk amount). |
| Red day | Day with at least one red USD or EUR event. |
| Reward-to-risk (payoff) | Avg win ÷ avg loss. |
| RRR | Reward-to-risk ratio of a planned trade (target ÷ stop distance). |
| Server sync | Automatic sync via our servers using the investor password. |
| Session | Trading time Asia, London or New York (in UTC, configurable). |
| Setup | Described trading idea with rules, checklist and features. |
| Setup type | A setup's category (pullback, breakout …), sets its symbol. |
| Starting capital | Initial balance of an account; basis for % and limits. |
| Static / trailing / EOD trailing | Type of max loss limit: fixed, following the high, or following only at end of day. |
| Win rate | Share of winning trades among all closed trades. |
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