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Joined: 9/8/2004(UTC)
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On behalf of InvestorRetired.
In System Tester under the Summary tap, is there a way to get the Annualized Performance results changed to Average Compound Rate of return instead of Average Rate of return. It distorts the return you think you are getting. For example, over 10 years, if your portfolio increases from $100 to $400, you would show a 300% increase. The way you calculate the return is by dividing this value by 10 to get an annualized return of 30% and this is an Average Return. The more correct answer would be an Average Compound Rate and this return would be 14.87%, a big difference. If no change is made, can the word average be added.
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Rank: Newbie
Groups: Registered, Registered Users, Subscribers
Joined: 10/1/2005(UTC)
Posts: 6
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Is there a way to fix that?
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Rank: Advanced Member
Groups: Registered, Registered Users, Subscribers
Joined: 9/8/2004(UTC)
Posts: 2,266
Was thanked: 1 time(s) in 1 post(s)
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Not that I know of, and not at this time. Remember you are in the wish list section :P
Patrick :mrgreen:
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Rank: Advanced Member
Groups: Registered, Registered Users
Joined: 6/13/2005(UTC)
Posts: 52
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Formula for Annual Compound Rate of Return.
F = P(1+i)n
F = Future value
P = Present Value
i = Rate of return
n = Periods
Solve for i.
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Rank: Advanced Member
Groups: Registered, Registered Users
Joined: 6/13/2005(UTC)
Posts: 52
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Just a note:
I belive TradeStation calculate the return the same as MetaStock.
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