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Gain and Abs.Gain
sdsarmad

Member Since Sep 13, 2009  7 posts sdsarmad Mar 18 2010 at 16:39 (edited Mar 18 2010 at 16:41 )
Hi
I am trying to undrestand how the Gain and Abs.Gain been calculated here so i can present it to my client.

unfortunatly, the example in the help section didnt help at all.

could some one please give me a good explanation and example so i can undrestand it.

sorry if i am being pain here, but i need to explain it to my client.

I have been asked to redo the calculation in excel to show then that my rturn are true based on what is been presented here at Myfxbook. however, i just keep getting diffrent numbers and canot match it.

please help

thanks

Staff
Member Since Jul 31, 2009  1049 posts Ethan (Staff) Mar 18 2010 at 18:04
sdsarmad, absolute gain is a simple (profit/deposits)*100.

Cumulative gain on the other hand accumulates over your account's history. If you had one deposit only, the cumulative and the absolute gains would be the same. If you had multiple deposits, then for each deposit term, you need to calculate a yield (same formula as above) and sum it up.

Example:
1. Deposit $1000, profit $500, gain is 50%, balance is now $1500.
2. Deposit another $2000, profit $500, yield is (500/3500)*100 = 14.2%.

Cumulative yield is 50+14.2 = 64.2% and absolute yield is 1000/3000=33.3%.

Let us know if it's still unclear.

Got a question? Need help? Send me a message!
sdsarmad

Member Since Sep 13, 2009  7 posts sdsarmad Mar 18 2010 at 22:19
thank you

all is clear now

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