# 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 Manager's Equity - **if the manager didn't deposit to or withdraw** funds from the Strategy account. However, if there were Deposits/Withdrawals made by the manager to/from the Strategy, they would also affect Manager's Equity of the Strategy. 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. ## **Change of Manager’s Equity is NOT an Indicator of Strategy Performance** It is important to note that Manager’s Equity of a Strategy may change due to deposits or withdrawals of funds from the Strategy by the Manager, without any trading. Such deposits or withdrawals do not affect profitability (Profit %). {% hint style="warning" %} A Strategy’s **Profit %** may change **only** as a result of Manager’s **trading activity**, either profitable or unprofitable. {% endhint %} A **deposit** by the Manager to the Strategy will increase Manager’s Equity but **won’t change Profit %** of the Strategy. Similarly, a **withdrawal** of funds by the Manager will reduce Manager’s Equity but **won’t change Profit %** of the Strategy. This explains why you may see, for example, a significant increase or decrease of Manager’s Equity that seems not to be reflected in Profit %: this would indicate that the Equity change was due to moving funds to/from the Strategy, NOT due to trading. The following examples elaborate on different scenarios of deposits, withdrawals, and trades by a Manager in a Strategy: ### Example 1: Deposits Don't Change Profit %: Consider a Strategy with the following indicators: * Initial Manager’s Equity: 1.0 BTC * Current Manager’s Equity: 1.5 BTC * Profit %: 50% 📥 If the Manager **deposits** 0.5 BTC to their Strategy: * Manager’s Equity will increase: 1.5 ↗ 2.0 BTC * Profit % will remain at: 50% ➡ 50% ↔️ Thus the deposit wouldn't change **Profit %**.\ 📈 However, you will see an increase in **Manager’s Equity** upon the deposit. ### Example 2: Withdrawals Don't Change Profit %: Again, lets consider a Strategy with the same indicators as in Example 1: * Initial Manager’s Equity: 1.0 BTC * Current Manager’s Equity: 1.5 BTC * Profit %: 50% 📤 If the Manager **withdraws** 0.5 BTC from their Strategy: * Manager’s Equity will decrease: 1.5 ↘ 1.0 BTC * Profit % will remain at: 50% ➡ 50% ↔️ Thus the withdrawal wouldn't change **Profit %.**\ 📉 However, you will see that **Manager’s Equity** reduced upon the withdrawal. ### Example 3: Change of Manager's Equity alone isn't an indicator of increase of Profit % The following example along with an explanation would be useful for Strategy Managers who want to understand how their Strategy Profit % would be affected by their deposits and withdrawals. #### **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, 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. |

Deposit (+) or
Withdrawal (-)

| **Equity after D/W** | **P/L in the selected period** | **Total P/L, $** |

Profit %
in the selected period

| **Compound** P**roduct** |

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%** | {% hint style="info" %} It is important to note that in this example the **Total Profit** earned was **+$50 (positive)**, but **Total Profit %** was **-10% (negative)**. If you're a **Follower** and need to understand the profitability of your Following - ignore the Strategy Manager's Equity and pay attention to your [**Profit % of the Following**](/help-center/covesting/managing-a-following.md#p-l-and-portfolio-statistics) in your Portfolio. {% endhint %} ## **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 4: 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) {% hint style="info" %} 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 {% endhint %} --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://primexbt.gitbook.io/help-center/covesting/strategy-profit-indicators-and-how-theyre-calculated.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.