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monthly gain % based on current balance Vote Results

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macdoug
Oct 15 2009 at 01:40
21 posts
currently the monthly % gain is calculated using the starting balance of the account. This does not reveal the true return for the month. It needs to be calculated on the balance at the start of the month to be a useful statistic

Ethan (Staff)
Oct 15 2009 at 09:33
1386 posts
The monthly gain is calculated using the last balance at a time of withdrawal/deposit. So every time a new withdrawal or deposit is made, the 'base deposit' value changes to the new balance.

If you would like to see this method changed, please cast your votes and we'll consider revising it.

Thank you.

macdoug
Oct 21 2009 at 07:51
21 posts

Staff posted:
    The monthly gain is calculated using the last balance at a time of withdrawal/deposit. So every time a new withdrawal or deposit is made, the 'base deposit' value changes to the new balance.

If you would like to see this method changed, please cast your votes and we'll consider revising it.

Thank you.

It is good that you recalculate from the balance after a deposit/withdrawal and this should not be changed but rather included with calculating the monthly % return based on the opening balance at the start of each month. For example if a trader managed to turn 1k into 10k after 12 months but did not add or withdraw funds and then made 1k profit for the month, he would show a 100% return for the month which is ridiculous as only a 10% return was achieved on his account that month. Nobody would be claiming a 100% return for the month in this example so neither should your graph display it that way.
Thankyou for replying
Doug

Ethan (Staff)
Oct 21 2009 at 08:01
1386 posts
macdoug posted:
It is good that you recalculate from the balance after a deposit/withdrawal and this should not be changed but rather included with calculating the monthly % return based on the opening balance at the start of each month. For example if a trader managed to turn 1k into 10k after 12 months but did not add or withdraw funds and then made 1k profit for the month, he would show a 100% return for the month which is ridiculous as only a 10% return was achieved on his account that month. Nobody would be claiming a 100% return for the month in this example so neither should your graph display it that way.
Thank you for replying
Doug


Yes, you're absolutely correct. We're working on resolving this issue.

Thank you.

macdoug
Jan 09 2010 at 07:00
21 posts
how is this coming along? - I have since doubled my account so the monthly returns are now showing twice what they actually are. In time the figures are going to be ridiculous and completely meaningless. Please dont take offence, I love the site and appreciate the work you do
Doug

Pinball (pinball)
Jan 09 2010 at 10:41
159 posts
This affects a lot of systems.


My system4 had a profit on the graph of 99% on may 18. up till that day i had doubled my money. this is cool and close to reality. besides good balance growth i had nice profits in unrealized open positions.

Then on may 26 i have a withdrawal of 700 usd from system4, and deposited them in system5.

and the system4 growth graph from may 26 onwards shows a profit of 2000% + and is the reason my system4 is seemingly the best performing live trading real money system on the site.

the system5 growth graph does not show any bumps around may 26, which is closer to reality. S5 recieved the 700 usd, and did only add new positions,did not close it's profitable ones.

The two systems trade more or less the same, except leverage, and except me closing out some positions to create balance to do the transfer.

Obviously there is something misleadnig with the charts, which i would like to have fixed. a system should not become seemingly ten times better in a week just because some positions were closed and a withdrawal. I don't know the exact nature of the problem, but it probably have something to do with profit in open orders and possibly also deposits and withdrawals in combination with closing open orders.

Another clear sign that the growth graph is strange is that you can have more than -100% growth in your graphs. This is also due to value of open positions not taken into consideration.

come to think of it, only looking at account balance is simply not very informative. it only tells half the story, and can be manipulated with.

As myfxbook already know the size and type of open positions at each point in time, myfxbook could (if you have historic forex price data) calculate a close estimate to the position value and estimate account value from these calculations.

Instead of changing the balance growth graph, you would probably want to create an entirely new graph, called net account value growth.

Other than this problem, great website i truly appreciate the work that has gone into this

knowledge as well as smarts are needed to make money.
mitchelmarsh008
Jan 27 at 10:50
18 posts
This might not work so well because you won’t get the accurate monthly gain percentage by this.

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