What is Calculation Method (FIFO vs Average)?

Indian market context (NSE)

Reference levels: Nifty 50 at 24,300, Reliance Industries at ₹1,300, Bank Nifty futures at 55,000 (lot size 30). Examples below show how Calculation Method (FIFO vs Average) shows up on Indian index, equity, and futures books — update to live quotes in your journal.

Nifty 50 perspective

Nifty F&O scaled entries: FIFO pairs first buy with first sell on index lots — matches many broker contract notes for tax year reconciliation.

Reliance Industries perspective

Reliance delivery with multiple ₹1,260–₹1,300 buys: average-cost method smooths P&L per share; FIFO shows different gain if you sell oldest lot first — pick one and keep all year.

Bank Nifty futures perspective

Bank Nifty futures rolls: close May contract at 55,000 and open June — calculation method for P&L must not double-count roll spreads; tag “roll” in TradeLyser.

How to validate

• Minimum sample: 30 closed trades on one strategy tag before trusting Calculation Method (FIFO vs Average).
• Check for one outlier week inflating Calculation Method (FIFO vs Average) — export largest winners and losers.
• Recompute Calculation Method (FIFO vs Average) after including brokerage, STT, and slippage on F&O tags.
• Compare Calculation Method (FIFO vs Average) on the same date range as profit factor and max drawdown.

How to track in TradeLyser

• Open Strategy Board or analytics → filter by strategy tag and review period.
• Locate the widget or column reporting Calculation Method (FIFO vs Average) (or export trades to compute manually).
• Store snapshot values in weekly review: Calculation Method (FIFO vs Average), profit factor, drawdown, trade count.
• If Calculation Method (FIFO vs Average) is custom, add a spreadsheet column fed from TradeLyser CSV export.

Best practices

• Publish Calculation Method (FIFO vs Average) per strategy, not only at account level.
• Use the same calculation window (weekly vs monthly) year-round.
• Pair Calculation Method (FIFO vs Average) with sample size in every review slide or note.
• Document formula used so mentors interpret the same number.

Common pitfalls

• Changing rules after fewer than 20 trades because Calculation Method (FIFO vs Average) moved slightly.
• Mixing intraday and positional tags when computing Calculation Method (FIFO vs Average).
• Ignoring costs so Calculation Method (FIFO vs Average) looks better than banked P&L.
• Letting one outlier trade dominate the Calculation Method (FIFO vs Average) reading.

How to use this in TradeLyser

Set calculation method in account settings once per book. If you change mid-year, annotate the switch in journal notes and re-baseline analytics.