> For the complete documentation index, see [llms.txt](https://primexbt.gitbook.io/help-center/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://primexbt.gitbook.io/help-center/covesting/strategy-profit-indicators-and-how-theyre-calculated.md).

# 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 %**

<figure><img src="https://1941544518-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-LfK-HdU-XXoT_wVnrCz%2Fuploads%2Fgit-blob-026d4a7edf65883f5e73103008fc3815fc315a38%2FScreenshot%202022-09-05%20at%2018.46.05.png?alt=media" alt=""><figcaption></figcaption></figure>

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.

| <p><strong>Deposit (+) or</strong><br><strong>Withdrawal (-)</strong></p> | **Equity after D/W** | **P/L in the selected period** | **Total P/L, $** | <p><strong>Profit %</strong><br><strong>in the selected period</strong></p> | **Compound** P**roduct** | <p><strong>Total Profit,</strong></p><p><strong>%</strong></p> |
| ------------------------------------------------------------------------- | -------------------- | ------------------------------ | ---------------- | --------------------------------------------------------------------------- | ------------------------ | -------------------------------------------------------------- |
| **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 %**

<figure><img src="https://1941544518-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-LfK-HdU-XXoT_wVnrCz%2Fuploads%2Fgit-blob-a9da93129388d44d4a1e209f6c26e403645d0722%2FScreenshot%202022-09-05%20at%2018.47.09.png?alt=media" alt=""><figcaption></figcaption></figure>

**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 %}