Profit Calculation by Malcolm Morley

Profit Calculation by Malcolm Morley

For those who are unsure of some of the calculations used to determine returns, the two threads below discuss the subject at some length. In particular the latter part of the second thread is worth reading, thanks to the input from Tom Schneider (tsch)

For those who are unsure of some of the calculations used to determine returns, the two threads below discuss the subject at some length. In particular the latter part of the second thread is worth reading, thanks to the input from Tom Schneider (tsch)

Extract:

quote:

If your monthly returns are: +10%, +15%, -7%, -13%, +24% your cumulative return is

=((1+10/100)*(1+15/100)*(1+(-7)/100)*(1+(-13)/100)*(1+24/100)-1) *100 = 26.91%

I have lived and breathed trading ever since trading fx professionally in London, Toronto and Philadelphia in the early 70's (yes I know that shows my age!). While my professional career subsequently took me from the trading desk to designing treasury systems for some of the world's leading financial institutions, my desire was to always trade for myself. As a consequence, following 5 years with a major international stock-broker (the last 3 as... More