Providence, Rhode Island/USA
Experience: Beginner
Broker: Tradovate, Finamark
Trading: ES, NQ
Posts: 12 since Feb 2020
Thanks Given: 3
Thanks Received: 5
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I'm in the process of building my trading journal, and am messing around with some hypothetical numbers to try and understand the proper way to calculate rate of return. Please see the attached screenshot. I guess my question is, how do you include deposits and withdrawals in your calculation?
In the hypothetical example in the screenshot, would you include the deposit and withdrawal in calculating rate of return?
My understanding is that I would take the total of the beginning balance, plus any deposits, minus any withdrawals. Then take the net profit (gross profit minus commissions and fees) and divide that by the total of the beginning balance, deposits and withdrawals. Am I doing this right? Am I missing anything?
Thanks
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