For a trading strategy, net profit should reflect realized gains and losses plus fees and other included costs over the stated period. The calculation needs a clear starting balance, ending balance and treatment of open positions.
A positive net profit does not establish reliability or good risk-adjusted performance. Drawdown, capital used, sample size, execution quality and whether all costs were included remain essential context.
ELI5
Net profit is what remains after gains and costs are combined. It is the amount a strategy actually added over the measured period under the stated accounting rules.
For example, a bot may report about $121 in net profit after its completed trades and included costs. That number should still be read alongside the starting capital, drawdown and any open positions or fees left outside the calculation.
