Performance tracking is one of the most important parts of evaluating a managed forex account. Looking only at the current profit number can hide meaningful information about volatility and risk.
Balance vs. Equity
Balance reflects closed trades. Equity also includes open profit and loss. A managed forex account may appear profitable on balance while carrying a significant unrealized loss, so both figures should be reviewed.
Maximum Drawdown
Drawdown measures the decline from an account peak to a later low point. Compare the size and duration of drawdowns with the return being produced. Higher returns achieved through much higher drawdown may not fit every investor.
Win Rate and Profit Factor
Win rate alone can be misleading. Profit factor, average win, average loss and trade frequency help provide a clearer picture of the strategy.
Track Performance Consistently
Use the same measurement method each month. Keep records of deposits, withdrawals and fees so they are not confused with trading performance. Long-term consistency is more informative than a few strong weeks.