Measure of the fair value
Your account statement from your broker includes all your closed trades and open positions. Valuations of open positions are from their last price. This valuation is called mark to market.
Investopedia says, “Mark to market (MTM) is a measure of the fair value of accounts that can change over time, such as assets and liabilities. Mark to market aims to provide a realistic appraisal of an institution’s or company’s current financial situation. In trading and investing, certain securities, such as futures and mutual funds, are also marked to market to show the current market value of these investments.”
This fact is important because the equity curve is made up of closed trades. Open positions are not reflected in the curve. As they close, they are then added into the equity curve. But remember, new positions are always opening.
Therefore, for any given timeframe, your Brokerage account statement and the Monthly Profit and Trade Count Table will probably not match. The difference will be the value of the open positions you see on your Brokerage Statement that you do not see on the tables.
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