Calculating Net Trading P&L

Net Trading P&L is the true measure of your trading performance. It shows how much money your trading actually made or lost, separate from deposits and withdrawals.

The Formula

Net Trading P&L = (Ending Balance − Starting Balance) − Deposits + Withdrawals

This formula isolates trading performance by:

  1. Starting with the raw balance change

  2. Subtracting deposits (not trading gains)

  3. Adding back withdrawals (were in the account before removal)

Step-by-Step Example

Let's walk through a complete example:

Starting point:

  • Starting balance: $10,000

Activity during the month:

  • Deposited: $2,000

  • Withdrew: $1,000

  • Ending balance: $12,500

Calculation: P&L = ($12,500 − $10,000) − $2,000 + $1,000 P&L = $2,500 − $2,000 + $1,000 P&L = $1,500

Interpretation: Your trading made $1,500. The balance increased by $2,500, but $2,000 of that came from your deposit. After accounting for the $1,000 withdrawal, the trading contribution was $1,500.

Different Time Periods

Month-to-Date (MTD)

Uses:

  • Starting balance = Balance on first day of month (or account creation if later)

  • Ending balance = Current balance

  • Deposits and withdrawals = This month's transactions

All-Time

Uses:

  • Starting balance = Original starting balance when account was created

  • Ending balance = Current balance

  • Deposits and withdrawals = All transactions ever

Custom Period

For any custom date range:

  • Starting balance = Balance at period start

  • Ending balance = Balance at period end

  • Deposits and withdrawals = Transactions within that period

Percentage Return

The platform also calculates percentage return:

Return % = (Net Trading P&L ÷ Starting Balance) × 100

Using our example: Return = ($1,500 ÷ $10,000) × 100 = 15%

This shows your percentage gain relative to where you started.

Where to See Your P&L

In the Account Drawer

The Overview tab shows:

  • Net Trading P&L (MTD)

  • Net Trading P&L (All-Time)

  • Percentage return

In the Private Accounts Table

The table may show a P&L column for quick comparison across accounts.

On the Dashboard

The Private Accounts summary card shows the combined Net Trading P&L across all your Active private accounts.

Paused, Closed, and Archived accounts are excluded from this total. Their P&L data is preserved in each individual account's history, but only Active accounts are included in the headline number so your Dashboard reflects current working capital.

What P&L Tells You

Positive P&L

Your trading made money. This is the goal.

Negative P&L

Your trading lost money. Important to acknowledge and analyze.

Zero P&L

Your trading broke even. Neither made nor lost money.

P&L Accuracy Depends On

Your P&L is only as accurate as your data:

Balance Updates

  • Frequent updates = accurate P&L tracking

  • Infrequent updates = gaps in the picture

Deposit and Withdrawal Recording

  • Complete records = accurate P&L

  • Missing transactions = skewed P&L (usually in wrong direction)

Starting Balance

  • Correct starting point = accurate baseline

  • Wrong starting balance = all calculations are off

Common P&L Questions

"My P&L seems wrong"

Check:

  1. Are all deposits recorded?

  2. Are all withdrawals recorded?

  3. Is the starting balance correct?

  4. Is the current balance up to date?

"P&L changed after I added a deposit"

Correct! Recording a deposit adjusts the P&L calculation. If your balance increased but you deposited money, the increase wasn't all from trading.

"Can P&L be positive if balance went down?"

Yes! If you withdrew more than your trading loss, the balance goes down but P&L can still be positive.

Example:

  • Start: $10,000

  • Withdraw: $3,000

  • End: $8,000

  • P&L: $8,000 − $10,000 + $3,000 = $1,000 profit

"Why doesn't my Paused account show in the Dashboard total?"

The Dashboard's Private Accounts headline number only includes Active accounts so it reflects your current working capital. Paused, Closed, and Archived accounts still have their own P&L visible in each account's drawer, they're just not rolled up into the headline.

Comparing Across Accounts

If you have multiple private accounts:

  • Each has its own P&L

  • The platform shows a combined total for your Active accounts

  • Compare percentage returns to see which accounts perform best

P&L vs. Dashboard Metrics

Your realized private account trading P&L does feed the Dashboard. It's included in Total Income and in your headline Net Business P&L, because it's real money your trading produced.

What stays out is your deposits and withdrawals, moving your own capital in or out isn't profit or loss, so only the trading P&L crosses over. (On the Private Accounts summary card you'll still see this same Net Trading P&L on its own, limited to Active accounts.)

The one Dashboard metric that deliberately ignores private P&L is the Sustainability Meter, which measures whether prop payouts alone cover your operating costs.

Using P&L for Decisions

Evaluate Your Strategy

If P&L is consistently positive, your strategy works. If consistently negative, something needs to change.

Set Realistic Goals

If you made 5% monthly, that's your baseline. Aiming for 100% might be unrealistic.

Know When to Add or Remove Capital

  • Strong positive P&L → Consider adding more capital

  • Negative P&L → Maybe reduce exposure, improve skills first

Compare to Prop Trading

How does your private account P&L compare to your prop firm payouts? This shows where your edge might be stronger.

Summary

Net Trading P&L is your truth meter for trading performance:

  • It removes the noise of deposits and withdrawals

  • It shows what your trading actually produced

  • It's the only reliable measure of trading skill in private accounts

Trust this number. It doesn't lie.

Next: Managing Account Status →