How to Measure your Trading Strategy Returns

Too Long; Didn't Read

Traders and investors often base the success of their portfolios or strategies on returns alone. There is a mix of return and risk factors that should be looked at together to get the full picture. Each approach looks at different factors like initial investment, cash flow differences and number of years and combining them might give a better perspective. The purest form of calculating return regardless of additional cash flow changes TWRR is best used as a benchmark of strategy’s performance. The ultimate growth check metric for strategies and investments that extend over longer period of time is used to determine how effective a strategy or investment has been in relation to similar investments.