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Troubleshooting: Equity

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Incorrect Funding Date

If you are looking at an equity % and it does not seem right to you, the problem is most often caused by having incorrectly set up the initial funding date of your account.

Go to accounts and click edit equity for that one broker. Make sure that the date of adding money to the account is BEFORE the first trade, or that the particular trade your looking at has a correct balance before it was made. If an account is ‘funded’ after the trade was made, then the trade shows 0 equity, because it is measuring what the change of equity is relative to what it was before the trade was made, and if the account was 0 before the trade, then there is nothing to measure against.

You can click the funding entry (or any manual adjustment entry) and change the date.

Make sure your date range at the top of the edit equity dialog includes a large enough date range to show the adjustment date (i.e., early enough or recently enough).

On the Accounts tab, see if the funding date needs to be corrected

Trying To Compare Simple Results to CTWRR

Another cause of equity confusion may come from the sophisticated method that the Trade Log uses to accurately compute equity rates. If you are trying to do a simple method of equity calculation on an account in which you have added funds or subtract funds, your results will differ. If you are looking at 2 brokerage accounts together in a Broker Group and they have different funding dates, then your simple equity calculations will not match either. To learn more about the Compounded Time Weighted Rate of Returns analysis done for you by the Trade Log, see this article.

The balance shown inside Edit Equity does not match the balance shown on the accounts page

This is sometimes the case if you use one base currency for a broker and another base currency for your overall accounts display page, such as illustrated below:

Note how both accounts show they are held in Pounds, but the base currency shows US Dollars

The gross values shown on the Analysis tab are not matching the values shown on the Trade Input tab

Have you discovered the drop down menu for the Currency choice on the Analysis tab heading? The choice of currency to see trades in has been made available for traders who have multiple accounts across the globe – some in one currency – some in another – and want a way of viewing all of them at once, in whichever base currency they choose. The Trade Log does a rates conversion on the spot. If you have the wrong currency selected the Log will be converting all values to that other currency for you.

To change this roll over the Logo at the top of the page and change the currency in the drop down menu.

The currency selector is available on the Progress Tracker, Summary and Analysis tabs.

The total for equity change at the bottom of the analysis tab is different than equity change in the summary tab

Seen on Analysis Tab

The number showing as the total on the Analysis tab is simply adding up all the individual figures of each separate trade. It does not compare beginning equity with ending equity in an account. The number on the Summary tab does compare beginning equity with ending equity, like you generally want to see and use.

Here’s an example. Let’s say someone sees a large number of trades in their analysis report and they see the bottom line of all their equities shows 5.14% total, like we show in this screenshot.

The equity change that shows on their summary tab may show a very different number. These will actually almost never match. In fact, it would be a surprise if the numbers matched! 

To illustrate the principle at work here, let’s take a simple example that we can see with a spreadsheet:

Spreadsheet showing the principle at work with equity

Let’s say you start with $10,000 and you make 1% each trade. That begins as $100 profit but is more with each trade (of course if you had a number of losses it would vary downwards too). We wanted to make the example simple though, so we just show wins.

Notice what happens if you add all the separate equity changes together. You get 16% gain. 16 trades x 1% = 16%. But this is not REALLY your net gain. In this case you’ve made $1,726, which is 17.26%, not 16%. This is the accurate equity gain, because it compares the end to the beginning.

At best, you can use the sum of all the individual equities as a ROUGH gauge or measure, but it will never exactly match what you true equity change is. In all the analysis tab columns, the Trade Log will simply do a low / average / high / total for all numbers shown in that column. We don’t differentiate if the numbers are equity changes or other percentages or what they are, because we leave it up to the trader to understand if the summary in this way is something to be used for their individual analysis or not.

Bottom line: trust the summary tab equity change for a summary of your equity changes.

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