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/Withdrawals = This month's transactions

All-Time

Uses:

  • Starting balance = Original starting balance when account was created

  • Ending balance = Current balance

  • Deposits/Withdrawals = All transactions ever

Custom Period

For any custom date range:

  • Starting balance = Balance at period start

  • Ending balance = Balance at period end

  • Deposits/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:

  • Total Net Trading P&L across all private accounts

  • Combined performance metrics

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/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

Comparing Across Accounts

If you have multiple private accounts:

  • Each has its own P&L

  • The platform may show a combined total

  • Compare percentage returns to see which accounts perform best

P&L vs. Dashboard Metrics

Dashboard shows: Money flowing in and out of your entire business (payouts, expenses, etc.)

Private Account P&L shows: Trading performance within your personal accounts

These are different metrics:

  • Dashboard focuses on cash flow

  • P&L focuses on trading skill

Private account P&L doesn't directly appear in Dashboard "Money In/Out" because you're not extracting it as business income. If you withdraw from a private account, that withdrawal isn't business revenue—it's your own capital.

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/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 →