If you’ve started trading with the Craider bot on Telegram, you might have already received the weekly report on how much profit you have made. The weekly report is a handy overview of how much you’ve gained with the Craider bot while using it the last 7 days. You might have wondered how exactly the profit was calculated, so in this post we’ll explain it in-depth.
A week is seven days
The weekly trade profit is calculated by a tool our developers created called the “Profit Measuring Tool”. The “Profit Measuring Tool” stores and processes all trades made in the last 7 days since the last weekly report, or since you started using the Craider bot if it’s the first 7 days. In other words, if you started using the bot on a Tuesday, you will receive the weekly report on the next Tuesday (7 days) after.
The “Profit Measuring Tool” stores this trade data per currency market and per exchange, respectively. At the end of the 7 days, you’ll get a message about your profits in both BTC and USD. So how is this calculated?
The basic maths behind it
Let’s say you’ve made 6 trades through the Craider bot during the last 7 days on one exchange, for example Poloniex. These 6 trades involved 8 different cryptocurrencies or digital assets.
When you buy Currency A with Currency B, the tool measures it as a deduction of Currency B for an addition of Currency A in your wallet on that exchange. By doing this, it’s possible to make a table with the trades, and thus the deductions and additions per currency:
As you can see in the table above, the deductions of currencies (the currencies you use as payments) are shown by a minus sign, to indicate that these currencies were deducted from the wallet, in order to add the currency you bought. Additionally, each action (addition/deduction) of a specific digital currency is also numbered, as you can see in the table above with Digital Currency G. Digital Currency G was bought two times with Digital Currency A, one time with Digital Currency D, and was used to buy Digital Currency E.
As confusing as it sounds, this way the tool is able to keep track of your wallet and currency changes, as a first step to calculating the profit.
It’s as easy as 1+2+3 = Absolute Growth
Now that all the trades are wrapped up in a nice table and sorted correctly, how do we calculate the weekly profit? First, we calculate the Absolute Growth (G) of each currency. This is simply adding up of all the changes of a currency in the wallet, and then assessing if it’s a positive or negative growth. Let’s take Digital Currency A in the table above. Digital Currency A was used 2 times to buy Digital Currency G, as can be seen by the minus sign in front of the two trades: -a1 and -a2.
Now if we add these two together with the formula G(a)= -a1 + -a2, we get the Absolute Growth of Digital Currency A in the last 7 days, and as we can see from the formula, the Absolute Growth will be a negative number. To illustrate that point more clearly, let’s take the value -100 for a1 and -200 for a2. In our formula it would be: G(a) = -100 + -200 = -300, so an Absolute Growth of 300 units in the negative.
This is straightforward with one or two trades, but if you’ve been trading actively with a certain currency, like for example Digital Currency G in our example, things can get a bit complicated.
The formula for Digital Currency G looks like this:
G(g)= g1 + g2 + -g3 + g4
Now that we have the Absolute Growth for each currency in the exchange wallet, it’s time to move on to the next step of the calculation.
Converting Absolute Growth to BTC and FIAT
The Absolute Growth is then added to our table in a separate row, and in the row below the tool then converts the Absolute Growth value to the current value in BTC on that exchange. If it is a negative Absolute Growth, then the BTC value will also be negative. For example, if your Absolute Growth for Ethereum, G(ETH) = -2 , it means that if the 1 ETH is 0.05 BTC (example value), then you have an G(ETH) = (-2 x 0.05 BTC) = -0.1 BTC, or in words, an Absolute Growth of Ethereum in your exchange wallet in the value of -0.1 BTC.
This conversion to BTC value is done for all the Absolute Growth values in the table of trades, so that we end up with one common denominator: the Absolute Growth value for each Digital Currency measured in BTC.
From there, BTC values (negative and positive) are added together to achieve a Total Growth in BTC. If the Total Growth is positive, you made a profit, and if it is a negative number, you made a loss, on that particular exchange. The next step is simply converting this Total Growth BTC value to FIAT (USD) using the rate of that particular exchange.
Wrapping all of these calculation steps together, you get the table shown below:
Multiple exchanges
However, most of the Craider Traders trade on multiple exchanges through the Craider Telegram bot, as it’s one of the most convenient functions available right now. In that case, the tool repeats all the steps for each exchange. The Total Growths in BTC for each respective exchange is then added up, and if there is a positive number, a profit was made. A negative number again represents an overall loss. The same is done for the Total Growths in FIAT for each exchange.
After a 7 day period, the tool is then able to accurately present you with an overview of your trade profit (or loss) in BTC and USD. If you have any more questions concerning the weekly trade profit, don’t hesitate to reach out to us on our special Craider help chat.
This post was written by Seetha Val, Head of Community at Craider. For a full view of Craider’s product offering, please visit our website or join our Telegram chat.
Craider is a digital assets platform consisting of a mobile messenger bot, a web based portal and a multi-functional exchange, all powered by data driven analytics. Craider’s aim is to streamline the flow of funds between platform users, traditional financial markets and the emerging digital asset economy.
