_update_profit - function inner workings

[plassi]

Greetings,

First of all, Many thanks to AminHP for sharing the project.

I have trouble understanding the ForexEnv's _update_profit function.

1. I understand that as I am using the Euro as my base currency with EURUSD pair, I should use unit_side='left'. Am I correct with this assumption?

2. The _total_profit variable is updated, only when a buy action is given and the existing position is short. From these rules, I understand, that the _update_profit function takes only short trades into account, calculating the _total_profit from latest short-trades only. Is this assumption correct?

Would you please be kind and clarify me, does the _update_profit function take into account profits from long-trades with Euro currency and if it does, how does it work?

def _update_profit(self, action):
        trade = False
        if ((action == Actions.Buy.value and self._position == Positions.Short) or
            (action == Actions.Sell.value and self._position == Positions.Long)):
            trade = True

        if trade or self._done:
            current_price = self.prices[self._current_tick]
            last_trade_price = self.prices[self._last_trade_tick]

            if self.unit_side == 'left':
                if self._position == Positions.Short: 

# Here the _total_profit variable is updated only if given action is Buy and existing position is Short.

                    quantity = self._total_profit * (last_trade_price - self.trade_fee)
                    self._total_profit = quantity / current_price

            elif self.unit_side == 'right':
                if self._position == Positions.Long:
                    quantity = self._total_profit / last_trade_price
                    self._total_profit = quantity * (current_price - self.trade_fee)

[AminHP]

Hi @plassi, Thanks!

Your assumptions are correct.

It doesn't take into account profits from long trades. When your base currency is EUR and you use the EURUSD pair, only short trades are profitable.