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While Net Profit shows you exactly where your portfolio ended up on the final day of the simulation, the Highest Portfolio Profit and Highest Portfolio Loss metrics show you the extreme boundaries of your capital curve along the way.

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Strategic Application

These two metrics are crucial for understanding the “capital journey” of your algorithmic strategy.

Highest Portfolio Profit (Peak Equity)

This marks the absolute highest valuation your account ever reached. Tracking this allows you to measure exactly how far your current portfolio has fallen from its all-time high (your current active drawdown).

Highest Portfolio Loss (Absolute Trough)

This marks the absolute lowest point your portfolio dropped below your initial starting capital. This is different from Maximum Drawdown, as it measures pure underlying capital destruction from day one.

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The “Round Trip” Danger

If a strategy shows a Highest Portfolio Profit of +₹5,00,000 mid-way through the simulation, but finishes the backtest with a Net Profit of only +₹50,000, the system is suffering from massive “round trips.” It is excellent at generating unrealized profits, but terrible at locking them in. If you see this pattern, you should adjust your strategy to utilize trailing stop-losses or tighter take-profit targets.