Why Does the Bot “Trade at a Loss”?

This question often comes from beginners because they are used to tracking trading activity through the exchange interface.

When monitoring trades this way, you may see negative profit in the history of closed orders. Let’s explain why this happens.

• How the Bot Calculates Profit
  The bot fixes profit based on the difference between the entry and exit of each individual IN order, summing the profit for each closed pair.
  At the same time, it does not take into account the current potential drawdown of the open position.

• How the Exchange Calculates PNL
  The exchange calculates profit or loss based on the difference between the closed order and the average entry point of the entire open position.

If the position is currently in the negative zone, the exchange will show each closed order as a loss because the exit price is below the average entry price.
However, this does not mean that the bot is trading at a loss. If the price continues to rise, the exchange will start fixing profit that exceeds the bot’s projected profit.

Thus, when a position temporarily goes into the negative zone, the bot is effectively averaging the entry point. This improves the situation because each future closed order can bring a higher PNL.