When designing the interface of the application, one of our priorities was user-friendliness; namely, the ability to constantly monitor your main balance indicators. The more effectively a trader monitors their trading success indicators, the faster they will build and adjust their trading system. For this purpose, we have fixed the panel with the main financial indicators at the top of the screen. This panel is also available in all sections of our application.
Let’s look at the main balance indicators. They should be used by the trader to constantly monitor their trading and investment performance.
Balance
This figure represents the available funds deposited in the user’s account. If the user has already placed investments in the application, their investment amount will also be shown in the balance.
Balance = Free funds + Current investments
Profit/Loss (P/L)
P/L consists of two indicators. The first is the user’s total amount of unrealized profit or loss on all current investments (open positions). This is an absolute value, expressed in USD. The second is the ratio of the unrealized profit or loss to the total amount of all current investments. The value of the index is given as a percentage and reflects the current profitability of the portfolio.
For example; if, at the beginning of the month, you had $5,000 in your account, of which $2,000 you invested in stocks of American companies, and by the end of the month the total return on current investments was $200, then the profitability or return on your investments was 10%.
Each trader individually determines the criteria for success in the value of return on investment, depending on their trading strategy. For our part, we can recommend evaluating the profitability on a significant period (for example, every month) and on a large number of open investments. After all, it is much wiser to earn +10% at the end of the month from several investments than to focus on a single investment that earned you 5% in a single day.
Equity
The estimated amount of the trader’s balance under the condition of fixing its result on all current investments, taking into account the current prices on the market. Returning to the example above, the trader with a balance of $5,000, of which $2,000 are current investments, will receive $200 of profit. In this case, if they close their investments at current market prices, their future balance will be $5,200, or it will be the value of their equity, as long as the investment is open.
Equity = Balance + P/L
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