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Thread: Whats my true return?

  1. #1
    This is for those who know more mathematics than me

    How do you calculate true return?

    People constantly ask me about my return, however I don't really know the true return because I add to my account. So by way of instance if I started with $1000 and I made $500 center of the year and added a second $1000 then I made $300 end of the calendar year, what's my return? I know it's not 40%.

    Is there a formula?

  2. #2
    I do look to see performance of currency traders. I really like to compare myself to. But the barclay index only makes up about 10% of total funds availalble. Very Few funds file or file punctually to make it accurate

  3. #3
    Quote Originally Posted by ;
    well I only signed on for my work to check out the formula to the PRR

    This is:

    PRR = gain/(begbal weighted transactions)

    weighted transaction = (deposit amt * (times of deposit))/total times **assuming no withdrawals in this situation

    Thus, in the example:
    Assuming you made $300 and $500 for a total of $800 profit. Your beginning balance was $1000. You deposit $1000 on 6/30/2007. The close of the period is 12/31/2007. So the weighted transaction for the deposit (1000 * (184)/364)) = 505.49

    **Notice, excel said 364 was difference between 1/1/2007 and 12/31/2007 and 184 for 6/30/2007 to 12/31/2007 so that is what I used

    PRR = 800/(1000 505.49) = 53 percent on an annualized basis.

    I'm still not sure that this is accurate for what we do. I will ask the account rep. He double checked my code together with his own formula.
    Regarding this, the analyst here at work said the correct PRR is 53 percent. We receive the average on withdrawals and deposits because a 401k plan can have weekly, bi-weekly deposits depending upon your payroll to know the return everything that is true is weighted.

    So far as Foreign Exchange is concerned I think that the 62 percent is more likely the return. Here is what I do on my spreadsheet.

    I do a weekly return and then a monthly return. I utilize the balance at the beginning of the week. At the beginning of the month the balance is used by me on the monthly.

    My October return was 31.46 percent. November was -3.04% and December was 41.87 percent.

    These numbers are different than that which I posted here https://forexintuitive.com/discussio...pivot-egy.html because in this informative article I had been doing it by the week rather than state 10/1 to 10/31.

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