The Portfolio Performance graph is in the Analyze Portfolio tab of the My Portfolios page.

It calculates the daily gains and losses for your open and closed positions to determine the portfolio's performance. In this context, "percentage change" refers to how much the value of your portfolio has increased or decreased over time, expressed as a percentage.

You can view the equity percentage change on the graph based on a selected date range. Any date range can be selected; however, if you choose a start date before the entry date of your positions, we will only be able to track the portfolio's performance since the time of entry.

The portfolio performance value for the start date always equals zero percent, no matter the time range you have selected:

If your position entry dates took place after your selected date range, your portfolio start date will not start with the comparing market or portfolio.

It may look something like this:

You can also compare your portfolio's performance to any other portfolio within TradeSmith Finance or the major U.S. and foreign indexes.

Calculation Process:

First, your positions' gains and losses are based on the adjusted entry price (adjusted for stock splits and distributions). Then, it tracks your positions' gains and losses based on each trading day's latest close price (adjusted for stock splits and spin-offs).

If you exit a trade, it calculates the gains and losses based on the exit price (adjusted for stock splits and distributions).

The actual dividends received are used to calculate the overall gains. 

The dividends are calculated into the gains with the following formula:

Gain$ = Shares * (Close Price - Open price + Dividend per share) for longs

Gain$ = Shares * (Open Price - Close Price - Dividend per share) for shorts

Dividends would increase the percentage of gains. If you are trading a short position, the dividends issued would decrease the percentage of gains.

You must have the correct entry and exit prices. Correct entry prices are important for determining your cost basis; however, if you do NOT have entry dates and or exit dates (displays N/A within the date columns), those positions will be EXCLUDED from the calculation.  

The entry date is one of the most important input parameters and can be even more important than entry prices.

We only track securities that we can track within TradeSmith Finance. For example, we do NOT track bonds, so the graph would not reflect this performance data.

We also do NOT consider cash; however, we will consider it in future implementations. Our algorithm defines the minimum amount of cash necessary to enter and exit all your positions. 

Here are key points to remember:

• Daily Gains and Losses: The graph tracks the daily changes in the portfolio’s value based on the open and closed positions. Gains and losses are calculated by comparing the adjusted entry price (price adjusted for stock splits and distributions) to the latest closing price or exit price.
• Equity Percentage Change: This is the change in your portfolio’s equity (or value) from a certain starting point to an ending point, measured as a percentage. For instance, if your portfolio's value increases from $10,000 to $12,000, the equity percentage change is 20%.
• Starting at Zero Percent: Regardless of the time range you select on the graph, the portfolio's performance always starts at 0% on the start date. So, if you set the start date to January 1st, the portfolio's performance is considered 0% on that date. From there, it will track the percentage increase or decrease as time progresses.
• Adjustments: Adjustments are made for factors like stock splits, distributions, and spin-offs to ensure the percentage change accurately reflects the real performance.
• Dividends: Any dividends received are included in the calculation, contributing to the overall gain (or loss) reflected as a percentage change.