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How to work commission/netprofit in back-testing?

hey! so I don't think I'm a total idiot but this has got me considering it...

So basically, if my exchange has a 0.1 fee, I would list that as the commission right? Rather .2% due to buy AND sell, the thing is though, the more I increase the percentage, more "net profit' I get.

Also, what would "net profit" even be considered? If I enter a starting amount of $100, do a few trades USING the $100 and now have $120, is the Net Profit $20 or $120?

It just has me a bit confused as it turns red for some strategies that seems to have a decent "return"

Thanks!
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