CoinCatch Copy Trading: Updates on PnL Calculation

1. Position ROI Calculation Formula

• ROI = (Unrealized PnL or Realized PnL / Position Margin) × 100%

Where Unrealized PnL and Realized PnL are calculated based on the difference between the current market price and the entry price, using the following logic:

• Unrealized PnL Calculation:
  • For open positions, Unrealized PnL = (Current Market Price - Entry Price) or (Entry Price - Current Market Price) × Quantity / Latest Margin Mark Price
  • For Long Orders: Current Market Price - Entry Price
  • For Short Orders: Entry Price - Current Market Price
• Realized PnL Calculation: For closed positions, Realized PnL = (Close Price - Entry Price) or (Entry Price - Close Price) × Quantity / Latest Margin Mark Price
  • For Long Orders: Close Price - Entry Price
  • For Short Orders: Entry Price - Close Price

 

2. Calculation Method for Entry Price

The entry price is your average position entry price, which adjusts when you add to your position. The formula is as follows:

• Entry Price = (Total Futures Value in USDT / Total Contract Quantity)

Example:

Suppose Trader A opens a long position on BTCUSDT with 1 BTC at an entry price of 70,000 USDT. One hour later, Trader A adds to the position by opening another long position with 1.6 BTC at an entry price of 80,000 USDT. The entry price calculation is as follows:

• Total Contract Value in USDT = (1 × 70,000) + (1.6 × 80,000) = 70,000 + 128,000 = 198,000 USDT
• Total Contract Quantity = 1 + 1.6 = 2.6 BTC
• Entry Price = 198,000 USDT / 2.6 BTC = 76,153.84 USDT

 

3. Additional Information

1. Calculating ROI using the entry price provides an accurate assessment of the performance of open positions since the initial entry. This method accounts for the impact of additional entries on costs, offering a comprehensive and fair evaluation metric.
2. Positive or Negative ROI: ROI can be positive (profit) or negative (loss), giving a clear indication of the effectiveness of contract copy trading.