Module 3 · Lesson 12 · 8 min

Net PnL Identity: Gross Minus Costs

What you'll be able to do

  • Book one day of a pair strategy into the four columns and compute net, with every sign right.
  • Reconcile a fold by checking that the column totals satisfy the identity, and find a sign error when they don't.
  • Explain why headline results come from the net series, never from gross.

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