A new long-awaited upgrade was just released, we added the Profit and Loss report to our Dashboard. It was a much-needed feature that gives to our users the possibility to evaluate the performance of each rule.
While waiting for one of the most significant releases, the Backtesting Engine (that will come in July), users are now able to test their trading strategies on the Demo Exchange, without risking their capital, and at the same time, they can keep track of the results of each rule.
That means being able to recognize promptly any possible issues and adjust the strategy to fit the market conditions better.
How we calculate Profit and Loss?
The main goal of our calculation is to gauge how effective is the rule, so basically, the performance expressed indicates how much the strategy is adding to the value of your portfolio.
To do that we take a virtual snapshot of your allocation when launching the rule. Then, after each order executed, we update the value of the new balance with the value that your portfolio would have had if you didn’t run the rule.
In this way, a Profit of 10% means that Coinrule added 10% of the value to your wallet! Remember that your holdings can be down in USD or BTC term, and still, you can see a positive price change in your Dashboard, that means that Coinrule is doing the right job protecting from losses and also increasing your returns.
Of course, also the other way around can happen. It merely means that your rule must be adjusted or changed, don’t stick with a losing strategy. You can create so many great rules, why falling in love with the bad ones?
In addition to the instant Profit and Loss indicator related to each rule, we also show a graph indicating how the performance evolved over its time of activity. That provides useful insights for the user about when the rule delivered better gains and when, instead, it produced less satisfying results. Another tool to be able to adjust and improve your automated trading strategy.
Summer has come, but we are not planning any holidays! We have so many new features and improvement to release in the next weeks, stay tuned!