FAQ

Total profitability is one of the major determinants of Managed account’s general appeal. It gives an idea of how much an investor has earned or lost in terms of percentage points. This value helps us judge whether the investment would be profitable or not. It allows us to choose the Managed account that best fits our requirements.

Total profitability is calculated as follows:

Total profitability =(1/ * 1/ * 1/ - 1)*100, where

...1, B...B1,…1 – time elapsed between deposit/withdrawals
– initial balance
1 - equity1 the day before funds deposited/withdrawn
B – equity the day funds deposited
B1 – equity the day before funds deposited/withdrawn
– equity after deposit/withdrawal of funds
1 – current equity (total profitability parameter that changes in real-real time)
1Equity – amount of funds available including currently open positions.

EXAMPLE:

The above formula eliminates the impact of deposit/withdrawal on Managed account profitability.

Let us analyze total profitability values of two different Managed accounts:

Initial funds of Managed account1 manager = $100

Initial funds of Managed account2 manager = $200

Managers’ ending funds after the first investment period:

Managed account1 =$200
Managed account2 =$400

Total profitability of Managed account1 can be calculated as follows: (200/100-1)*100=100%
Total profitability of Managed account1 can be calculated as follows: (400/200-1)*100=100%

  Time Initial Equity Ending Equity Total profit
Manager 1 1 100$ 200$ +100%
Manager 2 1 200$ 400$ +100%

At the end of the first investment period Managed account1 manager made profit withdrawal in amount of $100, Managed account1 reinvested the profit in amount of $200, therefore their funds at the beginning of the second investment period are as follows:

Managed account1 = $100
Managed account2 = $400

Managers’ funds after the second investment period are as follows:

Managed account1 = $200
Managed account1 = $800

  Time Initial Equity Ending Equity Total profit
Manager 1 2 100$ 200$ +100%
Manager 2 2 400$ 800$ +100%

Total profitability of the Managed account1 over the whole period:

((200/100)*(200/100)-1)*100=300%

Total profitability of the Managed account2 over the whole period:

((400/200)*(800/400)-1)*100=300%

Profitability per day value determines the profitability of a Managed account per day.

This value is calculated as follows:

(/1-1)*100 , where:
– current equity
1 – equity at 00:00 current server time

Profit Factor (profitability) is the correlation between the sum of profitable deals and the sum of losses. Simply speaking, it gives us an insight into how big is difference between total profits and total losses, therefore the bigger this value the better it is for you.

Profit Factor is calculated as follows:

Net Profit = GrossProfit - GrossLoss , where:
GrossProfit – total profit;
GrossLoss – total loss

Maximum profit in pips is the maximum profit (expressed in pips) made per a deal over the whole trading period.

Maximum loss in pips is the maximum loss (expressed in pips) made per deal over the whole trading period.

Average profit per deal expressed in points is the arithmetic mean value of all profitable deals on Managed account.

This value is calculated as follows:

(Σ P)/(Σ Z) , where:
Σ P is the sum of all profitable deals expressed in pips
Σ Z is the sum of all profitable deals made on Managed account expressed in pips.

Average loss per deal expressed in pips is the mean arithmetic value of all losing deals on Managed account.

This value is calculated as follows

(Σ P1)/(Σ Z1) , where:
Σ P1 is the sum of losses on losing deals expressed in pips
Σ Z1 is the number of losing deals on Managed account