Portfolio Manager Statistics Reference

Formula:

Cost Basis = (Total Cost of Remaining Shares / Quantity of Remaining Shares)

Example Calculation:

1. Trader purchases 1 BTC for $10,000.

• Total Cost of Remaining Shares = $10,000

• Quantity of Remaining Shares = 1

• Cost Basis = ($10,000 / 1) = $10,000

2. Trader purchases an additional 1 BTC for $15,000.

• Total Cost of Remaining Shares = $10,000 + $15,000 = $25,000

• Quantity of Remaining Shares = 1 + 1 = 2

• Adjusted Cost Basis = ($25,000 / 2) = $12,500

3. Trader sells 1 BTC for $30,000.

• Total Cost of Remaining Shares = $25,000 - $12,500 = $12,500; Note: $12,500 is subtracted from the total cost because the trader sold half of their total position which was acquired for $25,000.

• Quantity of Remaining Shares = 2 - 1 = 1

• Adjusted Cost Basis = ($12,500 / 1) = $12,500; Note: No matter what price the trader sells, their cost basis remains $12,500. This example is meant to serve as a mathematical proof of the formula.

4. Trader purchases an additional 2 BTC for a total price of $10,000 ($5000/coin).

• Total Cost of Remaining Shares = $12,500 + $10,000 = $22,500

• Quantity of Remaining Shares = 1 + 2 = 3

• Adjusted Cost Basis = ($22,500 / 3) = $7500

5. Trader sells 2 BTC for $100,000 ($50,000/coin).

• Total Cost of Remaining Shares = (($22,500) - (2/3 * $22,500)) = $7500

• Quantity of Remaining Shares = 3 - 2 = 1

• Adjusted Cost Basis = ($7500 / 1) = $7500

Formula:

Realized PNL = (Sale Price - Cost Basis) * Quantity Sold

Trade-level:

Realized PNL for a trade is calculated as the difference between your cost basis (at the time of sale) and the selling price, multiplied by the asset quantity sold.

Position-level:

Realized PNL for a position is the sum of realized PNL for all sales within that position.

Portfolio-level:

Realized PNL on a portfolio level is the sum of realized PNL for all positions within that portfolio.

Example Calculation:

1. Trader purchases 1 BTC for $10,000.

• Cost Basis = $10,000

2. Trader sells 0.5 BTC for a total of $10,000 ($20,000/coin).

• Sale Price = $20,000

• Cost Basis = $10,000

• Realized PNL = ($20,000 - $10,000) * 0.5 = $5,000

3. Trader purchases an additional 2 BTC for $25,000 ($12,500/coin).

• New Quantity of Remaining Shares = 0.5 + 2 = 2.5

• Adjusted Cost Basis = (($5000 + $25,000) / (2.5)) = $12,000

4. Trader sells 2.5 BTC for a total of $100,000 ($40,000/coin).

• Sale Price = $40,000

• Cost Basis = $12,000

• Realized PNL = ($40,000 - $12,000) * 2.5 = $70,000

• Total Realized PNL = $5000 + $70,000 = $75,000

Formula:

Unrealized PNL = (Current Market Price - Cost Basis) * Quantity of Remaining Shares

Portfolio-level:

Unrealized PNL on a portfolio level is the sum of unrealized PNL for all positions within that portfolio.

Example Calculation:

1. Trader purchases 1 BTC for $10,000.

• Cost Basis = $10,000

• Unrealized PNL (immediately following the purchase) = ($10,000 - $10,000) * 1 = $0

2. Market price of BTC increases to $20,000/coin.

• Unrealized PNL = ($20,000 - $10,000) * 1 = $10,000

3. Trader sells 0.5 BTC for a total of $20,000 ($40,000/coin).

• Unrealized PNL (immediately following the sale) = ($40,000 - $10,000) * 0.5 = $15,000

4. Trader purchases an additional 3 BTC for a total of $45,000 ($15,000/coin).

• Adjusted Cost Basis = (($5000 + $45,000) / 3.5) = $14,286

• Unrealized PNL (immediately following the purchase) = ($15,000 - $14,286) * 3.5 = $2499

5. Market price of BTC decreases to $7500/coin.

• Unrealized PNL = ($7500 - $14,286) * 3.5 = -$23,751

Formula:

Allocation Percentage = (Position Value / Total Portfolio Value)

Example Calculation:

1. Trader starts a portfolio with $10,000. They allocate $350 to AVAX at a price of $35/coin.

• Remaining Liquidity (immediately following the purchase) = $10,000 - $350 = $9650

• Total Portfolio Value (immediately following the purchase) = $9650 + $350 = $10,000

• Allocation Percentage (immediately following the purchase) = ($350 / $10,000) = 3.5%

2. The price of AVAX increases to $70/coin (+100%).

• Adjusted Position Value = $700

• Adjusted Total Portfolio Value = $9650 + $700 = $10,350

• Adjusted Allocation Percentage = ($700 / $10,350) = 6.76%

Formula:

Mean Allocation Percentage = (Sum of Tracked Position Allocation Percentages / Number of Tracked Positions)

Example Calculation:

1. Trader manages a $100,000 portfolio with 3 active positions: AVAX (3%), BTC (5%), and ETH (4%).

• Mean Allocation Percentage = (3% + 5% + 4%) / 3 = 4%

Formula:

Liquidity Ratio = (Remaining Liquidity / Sum of Tracked Position Values)

Example Calculation:

1. Trader manages a $100,000 portfolio composed of $35,000 cash and $65,000 tracked positions.

• Liquidity Ratio = ($35,000 / $65,000) = 0.5385

Formula:

Cash Allocation Percentage = (Remaining Liquidity / (Sum of Tracked Position Values + Remaining Liquidity))

Example Calculation:

1. Trader manages a $100,000 portfolio composed of $35,000 cash and $65,000 tracked positions.

• Cash Allocation Percentage = ($35,000 / ($65,000 + $35,000) = 35%

Formula:

Net Contributions = (Sum of Deposits - Sum of Withdrawals)

Example Calculation:

1. Trader starts a portfolio with an initial deposit of $1000 in January of 2019. Six months later they deposit an additional $1000.

• Total Deposits = $1000 + $1000 = $2000

2. Trader withdraws $7500 from their portfolio in June of 2021.

• Total Withdrawals = $7500

• Net Contributions = $2000 - $7500 = -$5500

Formula:

Adjusted Portfolio Growth = (Portfolio Liquidity + Sum of Tracked Position Values) - Net Contributions

Note: (Portfolio Liquidity + Sum of Tracked Position Values) is the total trackable value of the portfolio at the time of calculation.

Adjusted Portfolio Growth Percentage = (Adjusted Portfolio Growth / Sum of Deposits) * 100

Example Calculation:

1. Trader manages a portfolio with $100,000 in cash and $50,000 in tracked positions. They've made $50,000 in deposits with no withdrawals.

• Net Contributions = $50,000 - $0 = $50,000

• Adjusted Portfolio Growth = ($100,000 + $50,000) - $50,000 = $100,000

• Adjusted Portfolio Growth Percentage = ($100,000 / $50,000) * 100 = 200%

2. Trader withdraws $30,000 from their portfolio in the form of cash.

• Net Contributions = $50,000 - $30,000 = $20,000

• Adjusted Liquidity = $100,000 - $30,000 = $70,000

• Adjusted Portfolio Growth = ($70,000 + $50,000) - $20,000 = $100,000

• Adjusted Portfolio Growth Percentage = ($100,000 / $50,000) * 100 = 200%

3. One year later the tracked positions are still worth $50,000 and the portfolio liquidity is still $70,000. The user deposits an additional $20,000 in the form of cash.

• Total Deposits = $50,000 + $20,000 = $70,000

• Total Withdrawals = $30,000

• Adjusted Net Contributions = $70,000 - $30,000 = $40,000

• Adjusted Liquidity = ($70,000 + $20,000) = $90,000

• Adjusted Portfolio Growth = ($90,000 + $50,000) - $40,000 = $100,000

• Adjusted Portfolio Growth Percentage = ($100,000 / $70,000) * 100 = 142.9%