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.

How the Yearly Calendar Calculates Each Month

The Yearly P&L Calendar (on your Dashboard) needs one P&L figure per account, per month. It uses a specific version of the formula above, because a calendar month doesn't line up neatly with when you actually recorded a Balance Update:

1. Ending Balance for the month = the most recent Balance Update dated inside that month. If there isn't one, that month shows a dash on the calendar — not $0.00 — because there's nothing to calculate.

2. Starting Balance for the month = the most recent Balance Update dated before that month started, however far back that is. If this is the very first Balance Update the account has ever had, the account's original Starting Balance is used instead.

3. Deposits and Withdrawals = everything dated between those two Balance Updates — not just the ones dated inside the display month itself. If you skip a few months without updating your balance, the deposits and withdrawals from those skipped months still get swept into whichever month's calculation spans the gap.

Skipped months example: say you have a Balance Update in January and the next one in June, with nothing in between. February through May will each show a dash. June's calculation reaches back to January for its Starting Balance, so the entire gap — including any deposits or withdrawals made in the meantime — is captured in June's number, not spread across or dropped from the empty months.

This monthly figure can occasionally look different from your account's own all-time P&L card if you have a deposit or withdrawal dated after your most recent Balance Update — the all-time card counts it immediately, while the monthly calculation only picks it up once the next Balance Update arrives to capture it. This gap closes on its own once you next update your balance; it isn't an error.

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 your Active and Paused private accounts.

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

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 Closed account show in the Dashboard total?"

The Dashboard's Private Accounts headline number includes Active and Paused accounts. 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 and Paused 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. This includes Active and Paused accounts — only Closed and Archived accounts are left out.

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, across your Active and Paused 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 →