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. 

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.

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.

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.

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%. 

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%

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%

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). 

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.