Hello Traders! Please be informed that for all masters and traders using GIC Social Trade, we use a calculation system based on the Time-Weighted Return (TWR) System. This system allows you to experience negative gains even if your USD value is profitable, or vice versa. How is the TWR system calculated? Below is a case study of the TWR calculation system:
- You make a deposit of $10 (current balance $10).
- Then, you trade and incur a loss of -$5 or -50% (current balance $5).
- After that, you make another deposit or top-up of $95 (current balance $100).
- Then, you trade again and make a profit of $6 or 6% (current balance $106).
- The way to calculate total gain is:
- ((-5/10+1)(6/100+1)-1)100=
- ((0.51.06)-1)*100=-47%
- Therefore, the total gain you obtained is -47%.
- Meanwhile, the total profit is = -$5 + $6 = $1