Are commissions calculated into Gross Profit or Loss?

[[email protected]]

I am using the Simulator for Ninjatrader and have selected Apply commissions to PnL calculations.

What I dont understand is that my screen is showing me:

Total Net profit: $ 865.44 USD
Gross Profit: $ 1,483.84 USD
Gross Loss: $ 618.40 USD
Commission: $ 164.56 USD

Net Profit should be: Gross Profit - Gross Loss - Commission: $ 1,483.84-$618.40 - $ 164.56 USD = $ 700.88 USD

So I dont think it is deducting commissions for the Net Profit calculation as the Net profit it calculates is $ 865.44 USD which is calculated using Gross Profit - Gross Loss.

When I unclick "Apply Commissions to PnL" I get the following from the Summary:
Net Profit: $ 1,030 USD
Gross Profit: $ 1,600 USD
Gross Loss $ 570 USD
Commission: 0
So Gross Profit - Gross Loss = $ 1,600 USD - $ 570 USD = $ 1,030 USD without commissions.

Can you please explain? I want to know my NET Profit AFTER commissions.

Thanks

PEDRO

[NinjaTrader_Jason]

Hello Pedro,

Please note that 'Apply commissions to PnL' does not affect reports you generate under the Control Center-->Account Performance-tab. This options applies to PnL displays such as in the SuperDOM and ChartTrader.

Commissions are included in the Total Net profit. Commission are already included in the Gross Profit and Loss as well.

You can view it in the Account Performance-->Trades-tab too. The 'Profit' column already includes the commission. You can check this by calculating the PnL using the entry & exit price for a trade.

[[email protected]]

Jason,

I dont understand why Ninjatrader calculates commissions within Gross Profit and Gross Loss..... Its confusing.

Gross Profit and Gross Loss should EXCLUDE commissions.

So Net Profit should be Gross Profit - Gross Loss - Commissions.

It does not make sense that its partly included on both Gross Profit and Gross Loss

Thanks

PEDRO

[NinjaTrader_Kyle]

Hi Pedro,

I do understand your point. I'll forward this on to development for further consideration as a possible change in the future.

Thanks for this feedback!

[wadams]

Hi NinjaTrader_Kyle,

I'm curious, do you know "why" gross profit and gross loss include commissions? That calculation goes against my accounting intuitions. But maybe there's some trading intuition that I'm missing.

[NinjaTrader_RyanS]

Hello,

Gross PnL figures now exclude commissions in all reports within NinjaTrader.