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Question: How is profit calculated when you lose all your money and then deposit more and make a profit?

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Nov 25, 2012 07:38 am
#1
ErisAlecto User

Postagens: 1
Membro desde: 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

Nov 26, 2012 04:41 am
Sasha User

Postagens: 836
Membro desde: 16/05/2011

Originally posted by ErisAlecto

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

 



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. 

Nov 27, 2012 12:45 pm
Champ User

Postagens: 711
Membro desde: 17/05/2011

There r many sources on how to calculate weighted return. You can easily find it by googling. It is better than simple profit calculation formula.

http://www.fxstat.com/widget/link?t=tiny&c=1&s=24959&o1=growth&o2=drawdown&o3=profitfactor

Nov 28, 2012 05:35 am
Jogi User

Postagens: 685
Membro desde: 06/06/2011

Originally posted by Champ

There 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.

http://www.fxstat.com/widget/link?t=wide&c=1&s=26883&o1=growth&o2=drawdown&o3=monthly&o4=equity

Nov 30, 2012 05:10 am
illiterate User

Postagens: 561
Membro desde: 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.

https://www.fxstat.com/widget/link?t=medium&c=1&s=25892&o1=growth&o2=drawdown&o3=monthly&o4=equity

Dec 01, 2012 05:44 am
Sasha User

Postagens: 836
Membro desde: 16/05/2011

Originally posted by illiterate

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.



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%. 

Dec 06, 2012 01:07 pm
Champ User

Postagens: 711
Membro desde: 17/05/2011

Originally posted by illiterate

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.



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%

http://www.fxstat.com/widget/link?t=tiny&c=1&s=24959&o1=growth&o2=drawdown&o3=profitfactor

Dec 14, 2012 04:03 am

Postagens: 939
Membro desde: 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

Dec 15, 2012 07:13 am
Jogi User

Postagens: 685
Membro desde: 06/06/2011

Originally posted by uniquetrader

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%



Nice explanation but pretty big. Previous method was small.  Net profit/(sum of all deposits). 

http://www.fxstat.com/widget/link?t=wide&c=1&s=26883&o1=growth&o2=drawdown&o3=monthly&o4=equity

Apr 24, 2013 07:14 pm
irfan User

Postagens: 43
Membro desde: 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.

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