The strategy profit is a key indicator for choosing a strategy to be copied by subscribers (manual or with the algorithm/bot). By comparing this indicator of different strategies, you can choose the strategy worth copying.
When you subscribe to a strategy, you will be able to compare your profit with the strategy results. To check it, you should open your charts on the My Subscriptions page by opening the strategy subscription you are interested in. The chart will be displayed on the 3rd day after subscribing to the strategy.
The profit on the subscription page and the strategy profit are calculated the same way - via the TWR model - and these results can be compared.
Kindly note that most of the strategies are mid- to long-term. Their results can be seen in a 3-month period or longer.
Even if you have a high percentage of the copied signals, there might be a difference in the strategy profit.
There are several reasons for it:
1. Failed orders
The subscription profit is directly related to the copied signals. Even a few failed orders might impact the profit results. Coinmatics team recommends you to check the reasons for the failed signals in our article and try to fix the reason. You can also contact us at email [email protected] if you need our assistance.
All the failed positions are displayed on the subscription page. You can find it here: https://coinmatics.com/app/copy-trading/my-subscriptions/autotrading/.
2. The speed of copying
Orders are copied usually within less than 2 seconds. 2 factors impact the speed of copying: the number of executed orders and the Coinmatics plan. Due to these factors, there might be delays in the copying orders. This, in turn, can impact the price of a trading pair involved in an order, the profit for each order, and then the overall subscription profit.
Please note that the market situation also matters.
The order execution (buy or sell) on the subscriber's account takes place as the market on the exchange. Coinmatics can only handle the minimum delay in order execution on the exchange.
In case of high volatility, there may be a delay in order execution, no matter how quickly it is placed by the platform. Because you will have a different start date for the Profit Calculation Report and a different order history.
3. BNB coin on Binance trader's account
Traders might use the BNB coin to reduce the trading fees taken by the Binance exchange.
This coin can be shown as "Dust" on the strategy page.
Read more in the Binance article.
4. The start date of copying
The date you started copying the strategy should also be taken into account. If the strategy has been trading on the platform for a long time and you subscribed to it recently, the profits will be different.
Every time you re-subscribe to a strategy, a new subscription with a new profit chart is created. Summing up the results of the inactive and active subscriptions is not a reliable indicator of profit from the start date of the first subscription.
6. The starting balance and trading periods
2 parameters are used to calculate the strategy profit:
the value of your portfolio at the moment you start copy trading
or on the date of the strategy profit calculation for a certain period (a week, a month, 6 months) starts;
the portfolio value at the end of the trading period.
You and a strategy you follow (most frequently) start with different initial capital. It is taken into account when calculating the profit with the TWR model.
To calculate profit for a chosen period, the value of all its trading periods will be summarized. Trading period is defined with the cash flow not related to your copy trading activity (deposits, withdrawals, bonuses assessment, etc.). You might have different trading periods with a strategy. Each period starts with 0 portfolio value.
You can read our article about the TWR model here: https://support.coinmatics.com/en/articles/7019181-profit-value-on-coinmatics. That article provides you with even more details about how the profit depends on the starting balance and the trading periods.
Non-trading activities (deposits, withdrawals, bonuses assessment, etc.) are not taken into account in the profit calculation.
7. Depth of Market / Market depth / DOM.
Moreover, the difference may be affected by market activity on the trading pair and the number of orders, in other words, market depth.
"Market depth" or Depth of Market (abbreviated as DOM) is a table with the information on orders to buy and sell for a particular trading pair. It reflects the market activity at the current moment as well as the total number of orders to buy/sell a trading pair at a certain price. More orders on particular direction (buy or sell), the greater the difference in price will be.
Your orders are executed as a market at the moment the trader's order is executed. Because of the number of orders, you can buy or sell a coin at a different price than the trader's price. The greater the difference in price, the greater the difference in the profit results.
You can be guided by the strategy profit results, but you might have results that differ from the trader’s. At the same time, your results might differ from the exchange one as the profit might be calculated differently.
A difference of a few percent is acceptable. However, if the difference is more than 10-15% in the same trading period (strategy and subscription), please contact the support team.
If you have any questions about the profit charts or other functionality of the platform you can contact us at [email protected].