About Wallet Profit and Loss Analysis
The token profit and loss analysis feature of TokenPocket.
"Single Token Profit and Loss" is a term used in blockchain token investments to describe the profit or loss generated by an investor when holding or trading a specific token. It is widely applied in various scenarios within the cryptocurrency market. By analyzing single token profit and loss, investors can evaluate the performance of a particular token investment and optimize their strategies.
Currently, the types of single token profit and loss supported in TokenPocket include:
1. Profit and Loss Over a Time Period (7 Days/30 Days)
Profit and loss over a specific time period (e.g., 7 days or 30 days) are calculated based on the user's performance during that timeframe, primarily including two indicators: Profit/Loss Amount and Profit/Loss Rate.
Profit/Loss Amount
Formula:
Profit/Loss Amount = Sum of daily profit/loss during the time periodHow is daily profit/loss calculated?
Daily Profit/Loss = Sum of profit/loss from all individual sell transactionsWhat is the profit/loss for an individual sell transaction?
Profit/Loss for a single sell = (Sell Price - Average Holding Price) × Quantity Sold
The key here is the "Average Holding Price", which reflects the average cost of the assets you purchased. Its calculation is as follows:
Average Holding Price = (Single Buy Amount + Total Previously Calculated Buy Amount) ÷ (Total Previously Calculated Buy Quantity + Single Buy Quantity)
In simple terms, your daily profit/loss depends on the difference between the selling price and the holding cost, multiplied by the quantity sold. Adding up the daily profit/loss gives you the total profit/loss amount for the specified time period.
Profit/Loss Rate
Formula:
Profit/Loss Rate = Profit/Loss Amount ÷ Total Buy Cost During the Time Period
This indicator shows your return (or loss) as a percentage of the cost during the specified time period. For example:
A profit/loss rate of 10% means you made a 10% return.
A profit/loss rate of -5% means you incurred a 5% loss.
Example:
Suppose you held a token for 7 days, during which you bought and sold it multiple times. On one day, you sold 100 tokens at $10 each, while your average holding price was $8. The profit for this transaction would be:
(10 - 8) × 100 = $200
If the total profit over 7 days was $500 and the total buy cost during this period was $5000, the profit/loss rate would be:
500 ÷ 5000 = 10%
2. Total Profit and Loss for an Account/Token
In addition to statistics over specific time periods, the overall performance of a particular account or token is calculated. This is referred to as Total Profit/Loss.
Total Profit/Loss Amount
Formula:
Total Profit/Loss Amount = Total Profit/Loss Amount for the Entire Period
This includes all profit/loss data from a certain starting point to the present, covering all buy and sell transactions.
Total Profit/Loss Rate
Formula:
Total Profit/Loss Rate = Total Profit/Loss Amount ÷ Total Buy Cost
This reflects the overall return rate for holding a particular token relative to the total investment.
Example:
Suppose you invested a total of $10,000 in a token and earned $2,000 in profit through sales. The total profit/loss amount would be $2,000, and the total profit/loss rate would be:
2000 ÷ 10000 = 20%
3. Data Collection Basis
To ensure accuracy and reliability, single token profit/loss statistics are not calculated from the earliest holding time of the token but are based on the later of the following two key time points, with a slight delay for calculation:
Feature Launch Time: The time when the single token profit/loss feature was officially launched.
First Use of TokenPocket: The time when the user first started using the single token profit/loss feature.
By choosing the later time point and delaying the statistics slightly, the system ensures stability and completeness of the data collection. Therefore, the profit/loss data you see is entirely based on actual transaction records rather than arbitrary starting points. This design guarantees data accuracy and provides a solid foundation for investment analysis.
Buy Average Cost
Formula:
Buy Average Cost = Total Buy Amount ÷ Total Quantity Bought
This metric extends from the concept of "Average Holding Price" and reflects the average cost of your holdings.
Example:
If you buy 100 tokens at $5 each (spending $500) and then buy another 100 tokens at $7 each (spending $700), the buy average cost would be:
(500 + 700) ÷ (100 + 100) = $6
The buy average cost serves as the foundation for subsequent profit/loss calculations.
Sell Average Price
Formula:
Sell Average Price = Total Sell Amount ÷ Total Quantity Sold
This metric reflects the average price of your sell transactions.
Example:
If you sell 50 tokens at $10 each (earning $500) and another 50 tokens at $12 each (earning $600), the sell average price would be:
(500 + 600) ÷ (50 + 50) = $11
This indicator helps you quickly understand the average revenue level of your sell transactions.
Realized Profit/Loss Amount
Formula:
Realized Profit/Loss Amount = Total Profit/Loss from Daily Sell Transactions
Daily profit/loss is the sum of all individual sell transactions. The formula for a single transaction is:
Single Transaction Profit/Loss = (Sell Price - Buy Average Cost) × Quantity Sold
Example:
If your average buy cost is $6 and you sell 100 tokens at $10 each, the profit for this transaction would be:
(10 - 6) × 100 = $400
Realized Profit/Loss Rate
Formula:
Realized Profit/Loss Rate = Realized Profit/Loss Amount ÷ Total Buy Cost During the Time Period
This rate measures the return relative to the cost during the specified time period.
Example:
If the realized profit is $400 and the total buy cost is $1200, the realized profit/loss rate would be:
400 ÷ 1200 ≈ 33.33%
This provides an intuitive view of your investment efficiency.
4.Handling of Transferred Assets
For assets transferred into the platform from external sources, the current version of the single token profit/loss feature does not include them in the calculation of the buy cost. This means transferred tokens will not affect the average buy cost or total buy cost statistics.
This design focuses on the user's actual trading behavior within the platform. Future updates will optimize this rule, introducing more precise methods to account for transferred assets' impact on profit/loss calculations, thereby improving data completeness.
Data Source for Single Token Profit/Loss Statistics
The buy and sell data for single token profit/loss statistics are exclusively derived from trading operations on DEXs aggregated within TokenPocket.
Last updated
Was this helpful?