Metrics Explained

Understanding performance metrics and how they're calculated.

Profit & Loss (PnL)

Unrealized PnL

Definition: Profit or loss on open positions (not yet closed).

Formula:

Long: (Current Price - Entry Price) × Size
Short: (Entry Price - Current Price) × Size

Characteristics:

• Changes in real-time as prices move

• Not guaranteed until position closed

• Shown in position panel

Realized PnL

Definition: Profit or loss from closed positions (locked in).

Formula:

Realized PnL = Exit Price - Entry Price (accounting for size and fees)

Characteristics:

• Finalized when position closes

• Added to account balance

• Used for performance tracking

Net PnL

Definition: Total profit/loss including both realized and unrealized.

Net PnL = Realized PnL + Unrealized PnL

Trading Performance

Win Rate

Definition: Percentage of profitable trades.

Formula:

Win Rate = (Winning Trades / Total Trades) × 100%

Example:

Total Trades: 100
Winning Trades: 65
Win Rate: 65%

Interpretation:

• 50%+: Positive win rate

• 60%+: Good performance

• 70%+: Excellent performance

Note: High win rate doesn't guarantee profitability. Large losses can offset many small wins.

Profit Factor

Definition: Ratio of gross profit to gross loss.

Formula:

Profit Factor = Gross Profit / Gross Loss

Example:

Gross Profit: $10,000
Gross Loss: $5,000
Profit Factor: 2.0

Interpretation:

• 1.0: Break even

• 1.0: Profitable

• 2.0: Strong performance

Average Win vs Average Loss

Metrics:

Average Win = Total Profit from Wins / Number of Wins
Average Loss = Total Loss from Losses / Number of Losses

Risk/Reward Ratio:

R/R = Average Win / Average Loss

Example:

Average Win: $200
Average Loss: $100
R/R: 2:1 (winning trades are 2x larger than losers)

Drawdown Metrics

Current Drawdown

Definition: Current percentage below peak balance.

Formula:

Current Drawdown = ((Peak Balance - Current Balance) / Peak Balance) × 100%

Example:

Peak: $11,000
Current: $9,500
Drawdown: 13.6%

Max Drawdown

Definition: Largest peak-to-trough decline observed.

Use: Measures worst-case risk exposure.

Example:

Peak: $10,000
Trough: $8,000
Max Drawdown: 20%

Daily Drawdown

Definition: Loss within current 24-hour period.

Resets: Midnight UTC

Example:

Start of Day: $10,000
Current: $9,600
Daily Drawdown: 4%

Risk-Adjusted Returns

Sharpe Ratio

Definition: Measures return relative to risk taken.

Formula:

Sharpe Ratio = (Average Return - Risk-Free Rate) / Standard Deviation of Returns

Interpretation:

• <1.0: Poor risk-adjusted return

• 1.0-2.0: Good

• 2.0-3.0: Very good

• 3.0: Excellent

Example:

Average Monthly Return: 5%
Risk-Free Rate: 0.3%
Std Dev: 10%
Sharpe: (5% - 0.3%) / 10% = 0.47

Note: Higher Sharpe = better returns for the risk taken.

Sortino Ratio

Definition: Like Sharpe, but only penalizes downside volatility.

Why: Ignores upside volatility (which is desirable).

Formula:

Sortino = (Average Return - Risk-Free Rate) / Downside Deviation

Vault-Specific Metrics

Vault ROI

Definition: Return on initial capital for the vault.

Formula:

ROI = ((Current Balance - Initial Balance) / Initial Balance) × 100%

Example:

Initial: $10,000
Current: $12,500
ROI: 25%

Time to Deadline

Definition: Days remaining until deal ends.

Displayed as:

• "15 days remaining"

• "2 hours remaining"

• "Expired" (if past deadline)

Oracle Freshness

Definition: Time since last balance update.

Status:

• Fresh: <5 min

• Warning: 5-10 min

• Stale: >10 min (trading blocked)

Position Metrics

Leverage

Definition: Position size relative to account equity.

Formula:

Leverage = Position Value / Account Equity

Example:

Position: 1.0 BTC @ $50,000 = $50,000
Equity: $10,000
Leverage: 5x

Liquidation Distance

Definition: How far price can move before liquidation.

Percentage:

Liquidation Distance = ((Current Price - Liquidation Price) / Current Price) × 100%

Example:

Current Price: $50,000
Liquidation Price: $42,000
Distance: 16%

Warning Levels:

• 20%: Safe

• 10-20%: Monitor

• 5-10%: Warning

• <5%: Critical

Time-Based Metrics

Holding Time

Average:

Average Holding Time = Total Time in Positions / Number of Trades

Use: Identifies trading style (scalping vs swing trading).

Trading Frequency

Trades per Day:

Frequency = Total Trades / Number of Days

Example:

Total Trades: 150
Days: 30
Frequency: 5 trades/day

Fee Analysis

Total Fees Paid

Components:

• Trading fees (maker/taker)

• Gas fees (withdrawals, closes)

• Funding fees (perpetual positions)

Fee Impact on PnL

Net Profit After Fees:

Net = Gross Profit - Total Fees

Fee Percentage:

Fee % = (Total Fees / Total Volume) × 100%

Related Pages

• Dashboard Overview - Navigate the dashboard

• Exporting Data - Download metrics

• Risk Controls - Understand risk limits