Trading KPIs

WOWMAX ignores 95% of non-trading onchain activities (token transfers, staking, lending, airdrops) focusing solely on DEX trades. We developed the following methodology to calculate reliable KPIs.

Typically, active wallets participate in a wide range of onchain activities, including token transfers, airdrop claims, liquidity provision, perpetual trading, lending and borrowing, cross-chain transactions, and more. In fact, over 95% of onchain activities are unrelated to DEX trading. Therefore, it is crucial to filter out these non-trading activities when calculating performance KPIs for trading. For instance, receiving 300 USDT from another wallet does not imply an increase of $300 in the recipient wallet’s trading PnL. While this transfer affects the wallet's Net Worth, it should not influence its trading-specific profitability metrics.

WOWMAX specifically filters out all non-trading activities, concentrating solely on DEX trades to accurately analyze trading performance. Furthermore, the initial version of WOWMAX DEX copy trading excludes cross-chain swaps, focusing exclusively on swaps occurring within the Base chain.

To assist you in discovering, analyzing, and comparing wallet performances, WOWMAX calculates essential KPIs, including PnL, ROI, Win Rate, Number of Trades, Trade Days, Trade Volume, and Max Drawdown (MDD, available soon), over multiple timeframes—such as 24 hours, 7 days, and 30 days.

Importantly, WOWMAX calculates these KPIs using only trades involving tokens whitelisted for copy trading, as these are the transactions that will actually be copied. Swaps involving both whitelisted (W) and non-whitelisted (N) tokens are treated as sales or purchases for USDT. For example, a swap from W (sale) to N (purchase) will be counted as a sale of W for USDT, while the purchase of the non-whitelisted token (N) is ignored.

Now, let's review each KPI in detail:

1. PnL: Profit or Loss derived from trades involving whitelisted tokens. Since wallets often execute multiple buys and partial sells at varying prices, WOWMAX differentiates between two types of PnL:

   • Realized PnL: Gains or losses recorded when a wallet sells a token. WOWMAX shows realized PnL for each token sale. In case sold tokens were purchased in several tranches (at various prices), WOWMAX uses LIFO (last in, first out) method to calculate the realized PnL.

   • Unrealized PnL: Gains or losses calculated on currently open positions, based on the difference between the purchase price and the token’s current market price. WOWMAX shows Unrealized PnL for each token purchase. Again, if tokens were purchased in several tranches, the LIFO method is used.

2. ROI: Return on Investment, expressed as a percentage of the invested capital.

3. Win Rate: Percentage of profitable token purchases out of total purchases. A profitable purchase is the one that has a positive total PnL - the sum of realized PnL & unrealized PnL is greater than 0.

4. Number of Trades: Total count of executed trades within a given period.

5. Trade Days: Number of days since the first recorded trade. Note that WOWMAX does not have data on trades executed before tracking began, which may result in an underestimation of this metric for some wallets.

6. Volume: Total value of trades executed within the selected timeframe.

7. MDD (coming later): Maximum Drawdown, indicating the largest percentage loss from a peak to a trough. We use maximum drawdown (MDD) as the measure of the downside risk.