Dear Nami community,
In order to provide additional tools to help users evaluate the effectiveness of Futures trading, Nami Exchange officially introduces 2 new indices: Prediction Point and Capital Utilization Point from 2024-06-06 07:00 (UTC).
What is a Prediction Point (PP)?
Prediction Points are calculated after each successful order close, used to evaluate the user's ability to trade against price fluctuations of the futures contracts from the moment the position is opened via a market order or matched over the limit order until the position is closed (partially or fully).
The Prediction Point is composed of 3 parameters: Range between opening price and highest profit price, Range between opening price and greatest loss price, Range between opening price and actual closing price.
In which, Profit and Loss prices are calculated in the same direction as the position: Long positions will have an absolute profit price larger and an absolute loss price smaller than the opening price, conversely, Short positions will have an absolute profit price smaller and an absolute loss price larger than the opening price.
A position with a higher Prediction Point represents a sharper ability to predict price movements, for example the position is closed at the highest possible profit price during its entire existence. On the contrary, a low Prediction Point represents an inaccurate prediction of price movements, i.e. a position is closed at the maximum possible loss over its entire lifetime.
What is the Capital Utilization Point (CUP)?
Based on Prediction Point, Capital Utilization Point is an index that represents a combined assessment of the ability to determine futures contracts prices and trading psychology based on the actual trading volume of each position.
When two positions have the same Prediction Point, i.e. closed at the best possible profit price, the position with larger trading volume will have a higher Capital Utilization Point.
Notice
- The calculation of Prediction Points and Capital Utilization Points does not apply to Add Margin orders (because it does not change the Position Volume).
- For positions included Volume Added an Partially Closed orders, the position volume will be allocated to each closed order according to the overflow principle, pre-formed volume will be calculated in advance for each close
- Each user will have a different total Prediction Point and Capital Utilization Point based on points from all closed orders
Basic formula
Range between opening price and highest profit price = Absolute value of (Highest profit price - Opening price) / Opening price x 100%
Range between opening price and greatest loss price = Absolute value of (Highest loss price - Opening price) / Opening price x 100%
Range between open price and close price for a Long position = (Close price - Open price) / Open price x 100%
Range between opening price and closing price for Short position = (Opening price - Closing price) / Opening price x 100%
Note: The range between the highest profit price and the greatest loss price with the Open price is calculated as 0% when:
- The highest profit price is lower than the Open price and the lowest loss price is higher than the open price for a Long position
- The greatest profit price is higher than the Open price and the lowest loss price is lower than the opening price for a Short position
Prediction Point = (Range between opening price and highest profit price - Range between opening price and greatest loss price + Range between opening price and closing price) * 100
Capital Utilization Point = Predicted Point x Total Volume / Volume Reduce Index
In which, Volume Reduce Index = 5,000 USDT, 100,000,000 VNST
Illustrative example of Prediction Points and Capital Utilization Points
With fully opened and closed positions:
| Postion 1 | Postion 2 | Postion 3 | |
|---|---|---|---|
| Side | Long BTC/USDT | Long BTC/USDT | Long BTC/USDT |
| Open Price | 64,000 | 63,800 | 63,800 |
| Highest Profit Price | 65,800 | 65,800 | 65,800 |
| Greatest Loss Price | 63,000 | 63,000 | 63,000 |
| Close Price | 65,000 | 65,000 | 65,500 |
| Profit Price Range | 2.8125% | 3.1348% | 3.1348% |
| Loss Price Range | 1.5625% | 1.2539% | 1.2539% |
| Close Price Range | 1.5625% | 1.8809% | 2.6646% |
| Margin | 500 | 1,000 | 80 |
| Leverage | 100 | 50 | 125 |
| Open Volume | 50,000 | 50,000 | 10,000 |
| Close Volume | 50,781 | 50,940 | 10,266 |
| PnL | 781 | 940 | 266 |
| %PnL | 156.25% | 94.04% | 333.07% |
| Prediction Point | 2.81 | 3.76 | 4.55 |
| Capital Utilization Point | 56.69 | 75.94 | 18.42 |
With a position includes Partial Close and Added Volume orders:
| Position 1 - Original | Position 1 - Partially Close | Position 1 - Add Volume | Position 1 - Completely Close | Total Point | ||
|---|---|---|---|---|---|---|
| Remaining original | Remaining Volume | |||||
| Open Price | 64,000 | 64,000 | 64,800 | 64,000 | 64,800 | |
| Highest Profit Price | 65,800 | 66,000 | 66,000 | |||
| Greatest Loss Price | 63,000 | 63,000 | 64,300 | |||
| Close Price | 64,500 | 65,000 | 65,000 | |||
| Profit Price Range | 2.8125% | 3.1250% | 1.8519% | |||
| Loss Price Range | 1.5625% | 1.5625% | 0.7716% | |||
| Close Price Range | 0.7813% | 1.5625% | 0.3086% | |||
| Margin | 1,000 | 500 | 500 | 500 | 500 | |
| Leverage | 100 | 100 | 100 | 100 | 100 | |
| Open Volume | 100,000 | 50,000 | 50,000 | 50,000 | 50,000 | |
| Close Volume | 50,391 | 50,781 | 50,154 | |||
| PnL | 391 | 781 | 154 | |||
| %PnL | 78.13% | 156.25% | 30.86% | |||
| Prediction Point | 2.03 | 3.13 | 1.39 | 6.55 | ||
| Capital Utilization Point | 40.78 | 62.99 | 27.82 | 131.59 |
Display Prediction Points and Capital Utilization Points
Prediction Points and Capital Utilization Points will be displayed in the information table of each position in Order Details interface and the Order History section for each user, as well as the Futures Statistics interface.
These 2 types of points will also be displayed in the Masters information section of the Copy Trade product
Further information:
Best Regards,
Note: Nami reserves the right in its sole discretion to amend or change or cancel this announcement at any time and for any reasons without prior notice.
Risk Warning: Futures trading carries substantial risk and the possibility of both significant profits and losses. Past gains are not indicative of future returns. All of your margin balance may be liquidated in the event of extreme price movements. The information here should not be regarded as financial or investment advice from Nami. All trading strategies are used at your discretion and your own risk. Nami will not be liable to you for any loss that might arise from your use of Futures.
About Nami Exchange
Nami Exchange is a trading platform belonging to the Nami Foundation ecosystem that enables dynamic trading and effective investing through its Spot and Futures trading systems, which offer a wide selection of more 1000 trading pairs, support leverage up to x125, and 24/7 live support in Vietnamese & English.
___
Website: https://nami.exchange/
Download Nami Exchange app here.
Nami’s community:
- Telegram Nami Global Community: https://t.me/NamiGlobalGroup
- Twitter: https://twitter.com/NamiExchange
- Facebook Global Community: https://www.facebook.com/groups/namiglobal