Calculation rules - our fair algorithm for tracking results
Most of the Safetrading platform users ask us how we calculate the percentage of profit or loss in the reports. In the beginning, we used to do all of the processes of review manually but now, because of the high increase of channels and bots that want to be checked, we developed our special algorithm and connected it to the AI. This program takes into consideration all of the important factors - traders' experience, profit, doubtful mentions of the channel, etc.
The most important thing is that our calculation rules didn't change.
Now we conduct two parts of review - the first one is made by the Safetrading Algorithm and the second one - by the team of experienced traders who checks the review made by the program to be sure everything is audited in a proper way.
We will explain the calculations with help from the case of our reviewed channels according to the results of Q2 2018.
The following designations are in the document:
Coin – the name of the coin/token to be purchased (from the signal)
Buy Price – the price, according to which the coin/token is purchased (from the signal)
Target - the price, according to which the sale of the coin during growth is recommended. If there are no targets in the signal, we leave the corresponding slots empty.
Stop Loss – the price, according to which traders recommend selling the coin during fall to minimize loss (if the stop loss is not included in the signal, we leave the corresponding slot empty).
Sell Price - the coin/token sale price
Buy Date - the purchase date of the signal
Sell Date - the sale date of the coin
Profit/Loss - in this column, we state by how many percentage points the coin/token grew compared to the buy price.
*Note! We state by how many percentage points you would have increased your profit had you invested 10% of your deposit/portfolio into the signal. You can find the details below.
Profit - it is a general sum of profit from all the signals over the reporting period.
Loss - it is a general sum of loss from all the signals over the reporting period.
Process of Review
To make the calculations simple, let’s imagine that the whole deposit/portfolio is equal to 1 BTC.
The most important thing is that when we do our calculations, we assume that each signal is purchased for the amount of 10% of the deposit.
This is a general rule for all traders, as it ensures risk minimization. Sometimes these numbers can vary between 10-25%, but we took the average number, 10%, for all the providers.
Signals with Targets and Stop Losses
Let’s take a look at the first coin ADA.
It was purchased for a price of 2200 Satoshi on 05.04.2018 and was sold for 3100 Satoshi on 17.04.2018.
As a result, the general profit according to this coin is 40,91% compared to the purchase price, and 4,09% as compared to the total deposit amount (1 BTC).
Let’s take a look at the MOD signal now.
It was purchased for a price of 33000 Satoshi, reached stop loss of 27000 Satoshi, and was sold on 11.05.2018.
As a result, general loss according to this coin is -18,18% compared to the purchase price, and -1.82% as compared to the total deposit amount.
Let’s take a look at the coin WABI.
It was purchased at the price of 9200 Satoshi on 08.04.2018, reached the price of 13800 Satoshi and was sold on 18.04.2018.
This way, the general profit according to this coin is 50% compared to the purchase price and 5% compared to the total deposit amount.
Signals without Targets and Stop Losses
A major difference between signals with targets and stop losses is that, in our calculations, we assume that the coin is sold at the moment of its maximum value over the reporting period.
As well, if the stop loss was not stated in the signal, and no further instructions regarding the discussed purchase were given, we keep the token until growth starts, or sell it according to the current price during the last day of the reporting period (whichever comes first).
Let’s take a look at the first signal from the report of Infocrypto provider: LUX.
It was purchased for a price of 0.00065 BTC on 07.04.2018, reached a maximum of 0.0015 BTC, and was sold on 18.04.2018. As a result, the total profit for this coin was 130.77% of the coin purchase price, but only 13.08% of the total deposit amount.
Let’s take a look at the second signal AEON.
It was purchased for a price of 0.00024 BTC on 23.04.2018, the coin did not grow until the end of the reporting period and was sold on the last day of the reporting period for a price of 0.000214 BTC.
As a result, the general loss according to this coin was -10.83% of the coin purchase price, and -1.08% of the total amount of the deposit.
General profit according to the two coins was 12% of the total deposit.
According to our principle, the coin is sold automatically on the last day of the reporting period regardless of the behavior of the coin in the future.
In a specific case, we can review the results of the automatically sold coin upon the request of the provider.
As we have already mentioned, we use average data and calculate potential profit from the signals, assuming that you spend 10% of your deposit on every signal.
When are the reports calculated?
We calculate the reports every three months and publish them at the beginning of the following (fourth) month.
For example, the reports for January, February, and March were published at the beginning of April. The reports for April, May, and June were published in July, and so on.