Why Does the Bot “Trade at a Loss”?

This question often arises among beginners who are used to monitoring trades through the exchange interface. This method of control can be misleading, as the order history may show negative profits. Let's clarify why this happens.

---

How the Bot Calculates Profit:

The bot calculates profit based on the difference between the entry and exit of each individual IN-order, summing up the result per closed pair. It does not take into account the unrealized drawdown from open positions.

---

How the Exchange Calculates PnL:

The exchange calculates profit/loss by comparing each closed order to the average entry price of the entire open position.

If the position is in a temporary drawdown, the exchange will display each closed order as a loss, since the exit price is lower than the average entry. However, this does not mean the bot is trading at a real loss — as the price recovers, the exchange will begin registering profits that often exceed the bot’s projected profit.

---

What’s Actually Happening:

When the position temporarily goes into a loss, the bot is effectively averaging the entry point, which improves the outlook. As the price moves back up, each closed order will yield a higher PnL, boosting overall profitability.

In short:

• Exchange view: Shows loss based on open position average

• Bot view: Tracks actual realized profit per closed IN-order

Temporary losses are often part of the bot’s designed strategy for long-term gain.