This guide provides a comprehensive breakdown of key performance indicators used in Binance's copy trading feature, helping traders evaluate portfolio effectiveness and make informed decisions.
Core Copy Trading Metrics
| Metric | Definition |
|---|---|
| Return on Investment (ROI) | Percentage value reflecting portfolio profitability and efficiency |
| Profit & Loss (PNL) | Cumulative realized PNL + unrealized PNL |
| Maximum Drawdown (MDD) | Largest peak-to-trough decline in portfolio value during a specific period |
| Win Rate | (Profitable closed orders / Total closed orders) × 100% |
| Profitable Positions | Count of profitable closed orders vs total positions |
| Assets Under Management | Leader's portfolio value + total copied amount |
| Margin Balance | Wallet balance + unrealized PNL |
| Operational Days | Duration since portfolio creation |
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ROI and PNL Calculation Methods
Understanding ROI
ROI measures investment efficiency while accounting for deposit/withdrawal impacts:
ROI = (Ending Net Value - Starting Net Value) × 100%
PNL = Current Margin Balance - Initial Amount - Total Deposits + Total WithdrawalsNet Value Adjustment Scenarios
| Scenario | Formula |
|---|---|
| Deposit | T Net Value = [(T Margin Balance - Deposit) / (T-1 Margin Balance)] × (T-1 Net Value) |
| Withdrawal | T Net Value = [(T Margin Balance + Withdrawal) / (T-1 Margin Balance)] × (T-1 Net Value) |
| No Transactions | Ending Net Value = (Ending Balance / Starting Balance) × Starting Net Value |
Example Calculation:
| Day | 1 | 2 | 3 | 4 |
|---|---|---|---|---|
| Margin Balance | 500 | 400 | 1,400 | 1,550 |
| PNL | 0 | -100 | 0 | +150 |
| Net Value | 1 | 0.8 | 0.8 | 0.886 |
| ROI | 0% | -20% | -20% | -11.4% |
Note: ROI doesn't account for time factors when comparing trades.
Maximum Drawdown (MDD) Analysis
MDD measures worst-case portfolio decline:
MDD = (Peak Value - Lowest Subsequent Value) / Peak Value × 100%Key considerations:
- Indicates maximum historical loss magnitude
- Doesn't reflect recovery time
- Doesn't show loss frequency
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Win Rate Calculation
Win Rate = (Profitable Closed Orders / Total Closed Orders) × 100%Notes:
- Only fully closed positions count
- Partial closes excluded from calculation
FAQ Section
Q: How often should I check copy trading metrics?
A: Monitor weekly for active strategies, monthly for long-term portfolios. Key metrics like MDD and win rate reveal strategy health.
Q: What's considered a good win rate in copy trading?
A: 55-65% is generally strong. Higher rates may indicate excessive risk-taking. Always evaluate alongside ROI and MDD.
Q: Why does my ROI differ from actual profits?
A: ROI calculations account for capital movements and compounding, while profit displays simple dollar gains. Both metrics provide valuable perspectives.
Q: Can I filter copy traders by specific metrics?
A: Yes! Binance allows sorting by ROI, win rate, and other criteria to find strategies matching your risk profile.
Q: How quickly should a strategy recover from MDD?
A: Healthy strategies typically recover within 2-3 times the drawdown period. Extended recoveries may signal fundamental issues.