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Reading the monthly returns heatmap (and the NP/DD column)

The monthly returns heatmap, titled Monthly returns, is a grid of your strategy's return for every month, with a row per year and three summary columns — Total, DD, and NP/DD — on the right. This guide reads the grid, the summary columns, and the toggles that decide what the numbers include.

UPDATED 2026-08-02REVIEWED 2026-08-022 MINENIT

Before you start

Run a backtest first — the heatmap fills in only after a strategy has been simulated. Open your strategy, select the analysis view, and find the section titled Monthly returns. Each cell is shaded to show stronger and weaker months at a glance, and the exact figure sits in the cell.

How do you read the month grid?

Each row is a year (Year) and each cell is that year-and-month's return, so you can scan a single year across or one calendar month down the columns. Four KPIs summarise the whole period alongside the grid: Avg month, Best month, Worst month, and Positive months.

What do the Total, DD, and NP/DD columns mean?

Three columns on the right summarise each year.

  • Total is the total return for the year.
  • DD is that year's maximum drawdown.
  • NP/DD is net profit divided by maximum drawdown. It is a plain, public ratio, the same figure the metrics table calls the return-to-drawdown ratio. See return-to-drawdown ratio.

How do the Costs, Taxes, and Reinvest toggles change the numbers?

Three toggles under Simulation assumptionsCosts & interests, Taxes, and Reinvest profits — decide what the figures include. By default Costs & interests is off, Taxes is off, and Reinvest profits is on. Turning one on or off switches the whole page to a version the engine pre-computed when the backtest ran; the page reads the matching set of results rather than recalculating on the spot, so the change is immediate. The current-state view of live holdings ignores these toggles — it always shows reinvested figures with costs and taxes off.

What you should see

A grid of monthly returns laid out by year, shaded from weaker to stronger months, with a Total, DD, and NP/DD summary beside each year's row and the four period KPIs — Avg month, Best month, Worst month, and Positive months — nearby. Flipping a toggle re-labels the same grid with the pre-computed set it selects.

Common problems

The heatmap is empty or shows no months

The grid needs a completed backtest with monthly results. Run the strategy first; a strategy that has never been simulated has no monthly series to plot.

These figures describe what a strategy would have done on historical data, not what it will do. Fincanva provides no financial advice — see Is this financial advice?.

Terms on this page

Generated

Every defined term this page uses, matched against the corpus — including the alias forms the prose actually says.

Fincanva provides no financial advice. Backtests show what would have happened — not what will.

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