The Journal tracks several key performance indicators that help you understand your trading results.
Realized P&L #
- Definition: Net profit or loss from closed trades.
- What it shows: Your actual bottom-line performance.
- Use case: Track whether you’re making or losing money overall.
Unrealized P&L #
- Definition: Profit or loss on open positions.
- Location: Displayed on the Positions panel in the Trading space (not in the Journal).
- What it shows: How your current open trades are performing.
Equity Curve #
- Definition: Visual graph tracking the evolution of your account value.
- What it shows: Cumulative account value over time—every peak and valley.
- Use case: Identify growth trends, flat periods, and drawdowns at a glance.
Drawdown #
- Definition: The decline from a peak to a trough in your account balance.
- What’s displayed: Maximum drawdown (largest historical decline) and current drawdown.
- Location: Displayed on the Equity panel.
- Use case: Assess risk and recovery periods after losses.
Fees #
- Definition: Total trading fees paid to brokers and exchanges.
- What it shows: How much execution costs are eating into your profits.
- Use case: Evaluate if high-frequency strategies are cost-effective.
Win Rate #
- Definition: Percentage of trades that closed in profit.
- Formula: (Winning Trades / Total Trades) × 100
- Use case: Understand your consistency—but remember, a high win rate doesn’t guarantee profitability if losing trades are larger than winners.
Trade Count #
- Definition: Total number of trades executed in the chosen time period.
- Use case: Track activity levels and ensure you’re not overtrading or undertrading your strategy.
■ Try it now: Review each of these metrics in your Journal. Which one stands out as your strongest? Which needs improvement?
