Question: How is profit calculated when you lose all your money and then deposit more and make a profit?
ارسالها: 1
تاریخ عضویت: 25/11/2012
Hi,
Does anyone know how profit is calculated when you lose all your money and then deposit more funds and make a profit? I guess that if I had 100$ and then lost 100$ my Performance Profit will show -100%. What happens if after that I deposit 1000$ and make a 500$ profit? Will it show +50%? -50%?
Thanks
ارسالها: 836
تاریخ عضویت: 16/05/2011
Originally posted by ErisAlectoHi,
Does anyone know how profit is calculated when you lose all your money and then deposit more funds and make a profit? I guess that if I had 100$ and then lost 100$ my Performance Profit will show -100%. What happens if after that I deposit 1000$ and make a 500$ profit? Will it show +50%? -50%?
Thanks
I once asked similar question by contacting live support. It was some complex maths (for me at least it was complex). Fxstat calculates profit based on weighted return formula.
ارسالها: 711
تاریخ عضویت: 17/05/2011
ارسالها: 685
تاریخ عضویت: 06/06/2011
Originally posted by ChampThere r many sources on how to calculate weighted return. You can easily find it by googling. It is better than simple profit calculation formula.
Yea, I googled it and found very detailed article. I can understand a little. Many forex statistical analysis websites calculate this way.
ارسالها: 561
تاریخ عضویت: 21/04/2011
Weighted return not only depends on more than 1 deposits but also on number of periods. In ur example total deposit was $1100 and net profit is $400. So at the end u have $1500 (1100 + 400).
You can simply calculate it as 400/1100 = 36.36%.
But if u also include time factor, it will get more complex.
ارسالها: 836
تاریخ عضویت: 16/05/2011
Originally posted by illiterateWeighted return not only depends on more than 1 deposits but also on number of periods. In ur example total deposit was $1100 and net profit is $400. So at the end u have $1500 (1100 + 400).
You can simply calculate it as 400/1100 = 36.36%.
But if u also include time factor, it will get more complex.
Yes, it gets harder if u increase no of periods. But this was a nice explanation. So it wont get +50% or -50% but it will be 36.36%.
ارسالها: 711
تاریخ عضویت: 17/05/2011
Originally posted by illiterateWeighted return not only depends on more than 1 deposits but also on number of periods. In ur example total deposit was $1100 and net profit is $400. So at the end u have $1500 (1100 + 400).
You can simply calculate it as 400/1100 = 36.36%.
But if u also include time factor, it will get more complex.
Nice. Looks simple but I am sure that I will forget if example is changed with a bit different conditions. But just to remember the formula will be:-
(Net profit / sum of all deposits)*100%
ارسالها: 939
تاریخ عضویت: 21/04/2011
Another way to calculate ur total profit, if u have deposited in different times or even if u have deposited to different brokers, is by adding their weighted average return.
Consider the following situation:-
Deposited 200, Loss 100. Loss percentage = -50%
Deposit 600, Profit 300. Profit percentage = 50%
Deposit 1200, Profit 300. Profit percentage = 25%
To calculate Net profit/loss, first we will calculate weight of each deposit/investment
weight of the first deposit = (200/2000) = 10%
weight of the 2nd deposit = (600/2000) = 30%
weight of the 3rd deposit = (1200/2000) = 60%
Now we will calculated weighted return of each deposit/investment
w.r of 1st deposit = 10% * -50% = -5%
w.r of 2nd deposit = 30% * 50% = 15%
w.r of 3rd deposit = 60% * 25% = 15%
Net return of all investments = -5% + 15% + 15% = 25%
Stick to your rules
ارسالها: 685
تاریخ عضویت: 06/06/2011
Originally posted by uniquetraderAnother way to calculate ur total profit, if u have deposited in different times or even if u have deposited to different brokers, is by adding their weighted average return.
Consider the following situation:-
Deposited 200, Loss 100. Loss percentage = -50%
Deposit 600, Profit 300. Profit percentage = 50%
Deposit 1200, Profit 300. Profit percentage = 25%To calculate Net profit/loss, first we will calculate weight of each deposit/investment
weight of the first deposit = (200/2000) = 10%
weight of the 2nd deposit = (600/2000) = 30%
weight of the 3rd deposit = (1200/2000) = 60%Now we will calculated weighted return of each deposit/investment
w.r of 1st deposit = 10% * -50% = -5%
w.r of 2nd deposit = 30% * 50% = 15%
w.r of 3rd deposit = 60% * 25% = 15%
Net return of all investments = -5% + 15% + 15% = 25%
Nice explanation but pretty big. Previous method was small. Net profit/(sum of all deposits).
ارسالها: 43
تاریخ عضویت: 24/04/2013
There r many resources on how to determine heavy come back. You can locate it by looking for. It is better than easy benefit computation system.