Long, short, and where profit comes from

3 min · 6 steps

1. Step 1 · Long

   A long profits from a rise.

   You bought 0.10 BTC on Sep 6, 2024 at 53 963, sold on Dec 17, 2024 at 106 134. The difference is your profit.

   entry

   53 963

   exit

   106 134

   PnL

   +$5 217

   Entries and exits are by daily closes. An example for the math, not a signal.

2. Step 2 · Short

   A short profits from a drop.

   You sold 0.10 BTC on Jan 20, 2025 at 102 260, bought it back on Apr 8, 2025 at 76 322. In a short you sell first, then buy back.

   sold

   102 260

   bought back

   76 322

   PnL

   +$2 594

3. Step 3 · Formula

   PnL = (exit − entry) × size.

   That's for a long. A short flips the sign: (entry − exit) × size.

4. Step 4 · PnL in R

   R shows how many stops you earned.

   A BTC 15m long: a stop $370 from the entry, that's 1R. The target gave +2.4R at any size.

   Both trades are examples of the “Sweep + MSS” model, not an average result. See your own result in R in Stats.

   zonesweepMSSentry

   BTC 15m short +1.6R

   zonesweepMSSentry

5. Step 5 · Find it yourself

   Where was the short at its biggest profit?

   The short opened on Jan 20, 2025 at 102 260, that's the dashed line. Tap the candle.

   Practice on the chart

   This is a Find it yourself task: tap a candle or a level, and the lesson tells you right away if you got it.

   Create an accountThis step unlocks after sign-up. Your progress is saved.

6. Step 6 · Recap

   For a short, PnL flips, but R works the same.

   1

   entry

   ›

   2

   stop

   ›

   3

   exit

   ›

   4

   R

   recap

   PnL = (exit − entry) × size, flipped for a short. In R — how many stops you earned.

   There's no rule for your Pact here. Your own trades in R are in the journal and Stats.