Understanding how profit and loss (PnL) are calculated is important. This article explains the specific methods used by Gunbot to calculate and report these figures.
Gunbot's Calculation Method
Use of LiFo Method
Gunbot employs the LOFO (Lowest Cost + First Out) method for reporting pnl stats on realized trades. This accounting method assumes that assets acquired at the lowest cost are the first to be sold, leaving assets purchased at higher costs to remain in the portfolio. This method differs from LIFO by prioritizing the cost of assets over the chronological order of acquisition.
Deduction of Fees
It's important to note that all profit and loss statistics reported by Gunbot already have trading fees deducted. This ensures that the figures presented are a net representation of your trading performance.
Special Considerations for Futures Platforms
Direct Reporting from Exchanges
For certain futures platforms, such as Binance Futures, Gunbot's profit and loss stats are provided directly by the exchange.
Per Trade Basis Reporting
On these platforms, PnL statistics are reported on a per-trade basis, offering detailed insights into each trade's performance.
Conclusion
Gunbot calculates and reports profit and loss using the LOFO method, with all figures reflecting net values after the deduction of fees. For some futures platforms, these statistics are provided directly by the exchange on a per-trade basis, ensuring precise and detailed tracking of trading performance.