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Equity/performance of strategy is calculated wrong

The equity/performance of my strategy seems to be calculated wrong.
I summed up all trades in the tab MyStrategy.
The trading record with Typical broker commissions give 2,835 in net profits. Therefore, my Equity should be 52,835 ending Nov. 01 2019.
However, the green graph shows only 51,927. ** 900 disappeared**

The second strange thing:
after the trading day Oct. 31 was finished, the green graph first showed approx. 52.000. It seems, that number was not accounting for commissions. Overnight this number was reduced to 51,100. I assume that C2 runs an algo which finally deducts commissions.
From my trading record you see that my last trade on Oct. 31 was positive and my first trade on Nov. 01 was also positive. The first trade on Nov. 1st had no significant drawdown.
Nevertheless, the graph shows a drop from 51,100 down to 50,292 and as said it was already reduced from 52 k to 51 before.
The graph shows the same pattern from Oct. 30 to Oct. 31. I assume it is observably on Monday, too.

That´s confusing to me. What do I miss? Or is it really calculated wrong by C2?

I think it is wrong, as commissions and subscription fee could not explain the huge gap between actual profits and what is shown by the graph and the weird pattern.

Thanks for your help.

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Attached you find how Equity looked after my last trade on Friday Nov. 1

Here is how it looked Saturday morning, after doing nothing:

Okay, I dug into this a bit.

  1. Your trades (no commission costs applied) have a net profit of $4,267.

  2. However commissions (“default broker rate”) = $2,216

  3. Strategy subscription: $125

    $50,000 starting capital
    + $4,267
    - $2,216
    - $125
    = $51,926

This is what your equity chart shows. All matches perfectly. Excellent.

Except…

A reasonable question you might have is: “Hey, Matthew, I went through my closed trades displayed on the site (or I downloaded a CSV file), and when I add up all my closed trades in my trading record, I don’t get a P/L of $4267-$2216.”

That’s the source of confusion. What’s happening is that you closed a lot of trades yesterday. The closing commission costs were indeed correctly included in all your results, and in your equity chart, and in all your stats… but the actual trade-by-trade trading record is “cached” and did not (yet) include those closing commissions. Usually a delay in displaying commissions costs on trade-by-trade results is not noticeable or significant; but because you had so many closed trades yesterday, the closing commissions were quite significant.

You should see things get updated in the next hour or so as the cache gets gently refreshed.

Matthew

Hello Matthew,

thanks for taking care. I will look at it again.

Bianka

Hello Matthew,

I traded 277 contracts. Total commissions therefore are 277* 4 = ** 1,108 and not $ 2,216**

That proofs exactly what I mean. Your system substracts commissions 2 times.
Who pays 8 for a round turn? - Nobody, right? Actually you get all-in costs already below 4 at several FCMs and that without trading big volume.

So, sorry my friend, but either your calculation is wrong or your assumption.
Could you please check your code again?

Thanks,
Bianka

C2 even says on its website that costs per contract are $ 4…per contract - and not per side…

You traded 554 contract sides.

We assume $4 per side per contract for standard contracts as “default” rate. (Estimate of commissions and trade fees.)

You can see other rates and results for other brokers (such as IB) by pulling down the commissions drop-down menu on your strategy.

I think any other questions specifically about your strategy should be routed to our help desk (help@collective2.com).

P.S. I should just add that since we are highly regulated, our regulators want to see “reasonable” trading costs applied.

I understand your thinking.

By the way, I do not force you to answer personnaly. Thankful anyway!

However, you advertize live chat and I pay for live chat therefore but nobody is ever online. When reaching out to C2 by Email I get a small handful of words as an answer which explain nothing. But explanation is important as what you tell now and what is written on your website does not match.

Nevertheless, Gain Capital or Interactive Brokers do not charge $ 8 for a round turn even with Auto-Trade.

Furthermore what you said so far, does also not explain the observable 2 step reduction as I explained above. As I said the original values have been without commission. After that there was an adjustment accounting for “reasonable” commission regarding the real world (that would be enough for Regulators). But then as everybody could see on several days there is a second adjustment.

Honestly, Matthew…

We’re going to need to disagree about whether $4 per side for futures trades as C2’s “default” rate is reasonable or not. But that is the current value. I’ll make a note of your feedback that you would prefer it to be lower.

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