Strategy Profit indicators and how they're calculated
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Let’s take a look at the 2 main Strategy Profit indicators and how they're calculated - Total Profit % and Today’s 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.
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 %).
A Strategy’s Profit % may change only as a result of Manager’s trading activity, either profitable or unprofitable.
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:
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.
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.
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.
A Manager created a Strategy with an Initial Equity of $100. 📈 They made a profit of $50 (+50%): the Strategy's Equity became $150.\
📥 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.\
📤 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 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 % indicator reflects the change in Equity since the start of the current day (as opposed to the change of Initial Equity).
A Strategy manager allocated $100 toward his Strategy. This is the Initial Equity.
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%
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)