Growth measures the change of equity seen in a specific strategy. It is updated roughly every 5 minutes with statistics that calculate the change in a strategy’s equity from the beginning of the month until the end of the month.
Let’s see how this calculation happens:
Parts of the calculation are separated into periods between when an account deposits, withdrawals, or makes any internal transfer actions, collectively known as balance operations (BO). Total growth is calculated by multiplying all these periods between the balance operations, before the answer is presented as a percentile.
In other words, whenever a strategy provider withdraws or deposits, the growth calculation is not influenced at all to prevent artificial growth.
Growth is constantly updated and compounds over time.
Here’s an example*:
- In January, the strategy’s equity increased from USD 500 (E1) to USD 600 (E2). So January growth is calculated: (USD 600 - USD 500) / USD 500 = 0,2 or 20%
- Then the strategy provider made a USD 400 deposit, and the strategy’s equity is adjusted: USD 600 + USD 400 = USD 1 000. So the growth calculation in February will start not from USD 600 (E2) but from USD 1 000 (E3).
- In February, the strategy’s equity increased from USD 1000 (E3) to USD 1500 (E4). We can now calculate February’s growth: (USD 1 500 - USD 1 000) / USD1 000 = 0,5 or 50%
Now we can calculate overall growth:
K1= January growth + 100%, so K1 = 20% + 100% = 120%
K2 = February growth +100%, so K2 = 50% + 100% = 150%
Overall growth = (K1* K2) - 100%, or (120% * 150%) - 100% = 180% - 100% = 80% So overall growth is 80%
Growth calculations are strictly made between balance operations (deposits, withdrawals, and internal transfers), of which there is no limit, and that the use of the months of January and February as a time period are for example purpose only.
Basically, growth in previous months is superimposed into ongoing calculations and is only ever reset at the moment of a stop out, continuing as long as the strategy exists.