Trade Explorer: for pro traders

If a hedge fund manager tells you he’s “up 8% this month,” he’s invariably including the profit/loss of his open trades. That’s because the financial industry speaks in terms of equity, which includes the marked-to-market value of open trades. And it’s that way for a reason — the profit/loss on an open trade is every bit as real as on a closed trade, and performance metrics can be completely misleading when open trade activity is excluded.

As Product Manager for the Trade Explorer, I hear from members who are concerned that their Trade Explorer’s statistics are not as favorable as shown on other sites offering trade analytics. Most of the time the discrepancy is due to the trader carrying open losses in their account, which are only being accounted for on their Trade Explorer.

To illustrate this point, I opened a demo account and entered ten random trades. Then I closed the five trades that were winning and left the losing trades open. Here are a few metrics, for the same account, from Trade Explorer and Myfxbook:

Trade Explorer Myfxbook
(more stats) (more stats)

The account performance looks a lot better on Myfxbook because their statistics are based on balance, thereby ignoring the huge open loss. Since the Trade Explorer’s statistics are all based on equity, the open loss is reflected throughout all metrics, making the performance appear worse.

It’s not just these top-level statistics that are affected by the choice of equity or balance. Periodic metrics (e.g., How much did I make yesterday? How much did I make last February?) will change dramatically depending on how open trades are accounted for.

Out of the other eight sites we know of offering Forex performance analyzers, half of them are mostly balance-based, three are somewhat equity-based, and only one does a good job of reporting equity throughout. Since the Trade Explorer is one of the two analyzers that is completely equity-based, there’s a good chance your performance will, at times when you have an open loss, look worse on the Trade Explorer than elsewhere.

While this may keep some people from using the Trade Explorer, equity-based statistics are a must for professional traders. And professional traders are who the Trade Explorer was built for! We went to great lengths when developing the product to ensure that it was in line with financial industry standards, and that everything was based on equity.

Btw, we know balanced-based statistics do have their use. They can be helpful in performing what-if scenarios, for example. That’s why the Trade Explorer was built with an ‘Equity/Balance’ toggle that allows you to flip to balance-based statistics when needed.

If you have any questions or feedback, please send us some mail!

Posted by Danny, Trade Explorer Product Manager

9 Responses to “Trade Explorer: for pro traders”

  1. ZeeJay says:

    I'm really happy with the trade explorer. It helps me avoid big losses in terms of percent of equity as well as tell me when I've reached my goal for the week. Considering open trades in all calculations is VERY IMPORTANT to me -- If I am happy with my overall results I can just go ahead and close out my open orders and done !

  2. cristi01 says:

    It could be great if we could join in Trade Explorer the legs of the same trade( partial take profit/scale out could not be considered separated trades)

  3. ybfjax says:

    I think myfxbook has "absolute gain" which is equity based, correct?

  4. ZeeJay says:

    I agree with cristi01 here. I hope that's worked in the future. I usually close half my trades... so, the report comes out as making 'hundreds' of pips. even if it was just closing out 3 parts of the same 80-pip trade.

  5. fxcoaching's Avatar
    fxcoaching says:

    Danny, great job on Trade Explorer! Keep up the good work and please don't succumb to requests of traders wanting to hide their open positions. Including Open positions is very important to a true and accurate window to a traders performance. Thanks again! Steve Matrix

  6. signorx says:

    For a "pro trader" Trade Explorer we need also a support fro "pro trader" platform imho! Not only crappy MT4, please add support for other broker like mb trading and dukascopy at least!

  7. Xenofanes's Avatar
    Xenofanes says:

    Hello how do you prevent that the live accounts in new section about trades like gugafx are not fake from brokers like unscurpulous brokers well known from FPA?? Besides, I couldnot put here my account even if I want to since my broker is not on your list..... I must say I don't find information in new section much useful , in my opinion it is just even more noice which can disturb you from real trades.... frankly, I dont care that right know someone/all crowd on your pages is buying tons of GBP or JPY - it is just noice for me. however I appreciate this effort very much, I am sure in the future you will enhance this so it will be very useful tool. Very good is that you guys always come with something new and never give up. best wishes and warm regards X.

  8. Rag2RichesFX's Avatar
    Rag2RichesFX says:

    One of my brokers does not have investor passwords. Would be great l if there was an EA that could collect the data.

  9. Rtm's Avatar
    Rtm says:

    the whole basing off the equity is a valid point but fxbook still shows this, you have to look at the equity in brackets, it is the failure of the person analyzing it not the fault of stats.

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