Strategy Profit indicators and how they're calculated

Let’s take a look at the 2 main Strategy Profit indicators and how they're calculated - Total Profit % and Today’s Profit %.

Total Profit %

In the simplest case, Total Profit % indicator reflects the percentage change of the Initial Equity - if the manager didn't deposit to or withdraw funds from the Strategy account. Initial Equity of a Strategy is the amount of funds allocated toward the Strategy by the manager at the moment of Strategy creation.

However, if there were Deposits/Withdrawals made by the manager to/from the Strategy, they will be taken into account. In this case, Total Profit % is calculated as a compound percentage of all separate Profit or Loss percentages of all periods between one deposit/withdrawal to the next one.

An example of a Strategy Total Profit % calculation is provided in the table below along with an explanation.

In this example:

  1. A Manager created a Strategy with an Initial Equity of $100. They made a profit of $50 (+50%): the Strategy's Equity became $150.

  2. The manager then deposited an additional $100 deposit, bringing the Equity to $250. After this, the manager earned an additional $50 in profit. However, this $50 profit was made on top of the Equity of $250 after the last deposit, thus it was a 20% profit. Compounded with (not added to!) the previous 50%, the Total Profit % became 80% — see calculations in the table below.

  3. The manager then withdrew $200 from the Strategy, leaving it with $100 Equity. They further suffered a loss of -$50 or -50%. Compounded with (again, not added to!) the previous +80%, the Total Profit % became -10% — see calculations in the table.

It is important to note that in this example the Total Profit earned was +$50 (positive), but Total Profit % was -10% (negative).

Deposit (+) or Withdrawal (-)

Equity after D/W

P/L in the selected period

Total P/L, $

Profit % in the selected period

Compound Product

Total Profit,

%

1.Initial Equity: $100

$100

+$50

+$50

+50%

1.5

+50%

2.Deposit: +$100

$250

+$50

+$100

+20%

1.5*1.2=1.8

+80%

3.Withdrawal: -$200

$100

-$50

+$50

-50%

1.8*0.5=0.9

-10%

Today's Profit %

Today’s Profit % indicator reflects the change in Equity since the start of the current day (as opposed to the change of Initial Equity).

Example:

  1. A Strategy manager allocated $100 toward his Strategy. This is the Initial Equity.

  2. The Strategy manager has traded for some time and has made a $60 profit (60%). The Equity of the Strategy has already grown from $100 to $160. The Total Profit % = 60%

  3. The trader decides to trade again and makes a $5 profit bringing their Equity to $165.

The $5 increase in Equity from $160 to $165 will result in:

  • Increase of initial $100 Equity by $5 = 5% increase of Total Profit %

  • Increase of today's Equity by $5 from $160 = 3.12% increase in Today's Profit % (because $5 is 3.12% from $160)

Based on the information above, when reviewing Strategy statistics it is important to keep in mind that Total Profit % and Today's Profit % are different indicators the value of which will differ from one another based on numerous factors:

  • Initial Equity of a Strategy

  • Deposits to a Strategy

  • Withdrawals from a Strategy

  • Equity changes due to realized and unrealized P/L, trade fees and overnight financing