Understanding how profit and loss (PnL) are calculated is important. This article explains the methods Gunbot uses 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 assets acquired at the lowest cost are the first sold, leaving higher-cost assets in the portfolio. This method differs from LIFO by prioritizing cost over the chronological order of acquisition.
Deduction of Fees
All profit and loss statistics reported by Gunbot already have trading fees deducted. This ensures 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.