Compounding quiz

That looks good.
However I don't know what question it answers.
And what unknown you're talking about.

 

"

300% profit in 6 months makes compounded how much % profit in a year?

600%
750%
1000%
1500%

"

The 300% could be produced in 6 months by 1 trade hence compounding frequency 1, 100 trades hence compounding frequency 100, 1000 trades hence compounding frequency 1000, or any number of trades with different compounding frequency.

How can you calculate the answer of profit % in one year? Without knowing what is the compounding frequency? I don't know!

 

That's true. If we don't know what n stands for (Daily, Monthly, Yearly) then we can't answer.
I assumed it to be monthly. Since it ain't yearly.

 

Why not weekly, or daily, if compounding is the aim of this thread?

Now 4 pages, we are still assuming something we don't know from the start!

 

To avoid many confusion, they use annual rate (APR) as a standard.

 

"
Compounding quiz

300% profit in 6 months makes compounded how much % profit in a year?

600%
750%
1000%
1500%
"

Agree.
http://www.investopedia.com/terms/a/annualized-rate.asp
http://www.investopedia.com/terms/c/cagr.asp

But, What is your answer and calculation in detail for the above question?

 

The chart shows two unknowns, not only we need a compounding frequency but also an average return rate, in order to derive an answer for the OP's question/quiz!

Furthermore, in reality an average 50% with two trades is still meaningless if one trade is +200% and another is -100%!

 

Actually I think that all those value will be true.
1500% / Year = 26% / Month = 6% / Week = 1% / Day

There is no unknown.
It says someone made 300% for 6 months
If you extrapolate that performance you get the answer.
You don't need to know its daily, weekly, or whatever, rate.
Just shut your mouth, and extrapolate that dynamic.

 

Wrong again!

The first unknown is you need to Assume daily!

The second unknown is %, but you just changed from 3% per day to 2 % then now 1%.

Assuming daily compounding, it should be around 1.1%:

Also assuming No drawdown at all, not even one single day!

0 1.10% 100
1 1.10% 101.1
2 2.21% 102.21
3 3.34% 103.34
4 4.47% 104.47
5 5.62% 105.62
6 6.78% 106.78
7 7.96% 107.96
8 9.15% 109.15
9 10.35% 110.35
10 11.56% 111.56
11 12.79% 112.79
12 14.03% 114.03
13 15.28% 115.28
14 16.55% 116.55
15 17.83% 117.83
16 19.13% 119.13
17 20.44% 120.44
18 21.76% 121.76
19 23.10% 123.1
20 24.46% 124.46
21 25.83% 125.83
22 27.21% 127.21
23 28.61% 128.61
24 30.03% 130.03
25 31.46% 131.46
26 32.90% 132.9
27 34.36% 134.36
28 35.84% 135.84
29 37.34% 137.34
30 38.85% 138.85
31 40.37% 140.37
32 41.92% 141.92
33 43.48% 143.48
34 45.06% 145.06
35 46.65% 146.65
36 48.27% 148.27
37 49.90% 149.9
38 51.55% 151.55
39 53.21% 153.21
40 54.90% 154.9
41 56.60% 156.6
42 58.32% 158.32
43 60.07% 160.07
44 61.83% 161.83
45 63.61% 163.61
46 65.41% 165.41
47 67.23% 167.23
48 69.07% 169.07
49 70.93% 170.93
50 72.81% 172.81
51 74.71% 174.71
52 76.63% 176.63
53 78.57% 178.57
54 80.54% 180.54
55 82.52% 182.52
56 84.53% 184.53
57 86.56% 186.56
58 88.61% 188.61
59 90.69% 190.69
60 92.78% 192.78
61 94.90% 194.9
62 97.05% 197.05
63 99.22% 199.22
64 101.41% 201.41
65 103.62% 203.62
66 105.86% 205.86
67 108.13% 208.13
68 110.42% 210.42
69 112.73% 212.73
70 115.07% 215.07
71 117.44% 217.44
72 119.83% 219.83
73 122.25% 222.25
74 124.69% 224.69
75 127.16% 227.16
76 129.66% 229.66
77 132.19% 232.19
78 134.74% 234.74
79 137.32% 237.32
80 139.93% 239.93
81 142.57% 242.57
82 145.24% 245.24
83 147.94% 247.94
84 150.67% 250.67
85 153.42% 253.42
86 156.21% 256.21
87 159.03% 259.03
88 161.88% 261.88
89 164.76% 264.76
90 167.67% 267.67
91 170.62% 270.62
92 173.59% 273.59
93 176.60% 276.6
94 179.65% 279.65
95 182.72% 282.72
96 185.83% 285.83
97 188.98% 288.98
98 192.15% 292.15
99 195.37% 295.37
100 198.62% 298.62
101 201.90% 301.9
102 205.22% 305.22
103 208.58% 308.58
104 211.98% 311.98
105 215.41% 315.41
106 218.88% 318.88
107 222.38% 322.38
108 225.93% 325.93
109 229.52% 329.52
110 233.14% 333.14
111 236.80% 336.8
112 240.51% 340.51
113 244.26% 344.26
114 248.04% 348.04
115 251.87% 351.87
116 255.74% 355.74
117 259.65% 359.65
118 263.61% 363.61
119 267.61% 367.61
120 271.65% 371.65
121 275.74% 375.74
122 279.88% 379.88
123 284.05% 384.05
124 288.28% 388.28
125 292.55% 392.55
126 296.87% 396.87
127 301.23% 401.23
128 305.65% 405.65
129 310.11% 410.11
130 314.62% 414.62
131 319.18% 419.18
132 323.79% 423.79
133 328.45% 428.45
134 333.17% 433.17
135 337.93% 437.93
136 342.75% 442.75
137 347.62% 447.62
138 352.54% 452.54
139 357.52% 457.52
140 362.55% 462.55
141 367.64% 467.64
142 372.79% 472.79
143 377.99% 477.99
144 383.24% 483.24
145 388.56% 488.56
146 393.93% 493.93
147 399.37% 499.37
148 404.86% 504.86
149 410.41% 510.41
150 416.03% 516.03
151 421.70% 521.7
152 427.44% 527.44
153 433.25% 533.25
154 439.11% 539.11
155 445.04% 545.04
156 451.04% 551.04
157 457.10% 557.1
158 463.23% 563.23
159 469.42% 569.42
160 475.68% 575.68
161 482.02% 582.02
162 488.42% 588.42
163 494.89% 594.89
164 501.44% 601.44
165 508.05% 608.05
166 514.74% 614.74
167 521.50% 621.5
168 528.34% 628.34
169 535.25% 635.25
170 542.24% 642.24
171 549.30% 649.3
172 556.45% 656.45
173 563.67% 663.67
174 570.97% 670.97
175 578.35% 678.35
176 585.81% 685.81
177 593.35% 693.35
178 600.98% 700.98
179 608.69% 708.69
180 616.49% 716.49
181 624.37% 724.37
182 632.34% 732.34
183 640.39% 740.39
184 648.54% 748.54
185 656.77% 756.77
186 665.09% 765.09
187 673.51% 773.51
188 682.02% 782.02
189 690.62% 790.62
190 699.32% 799.32
191 708.11% 808.11
192 717.00% 817
193 725.99% 825.99
194 735.07% 835.07
195 744.26% 844.26
196 753.55% 853.55
197 762.93% 862.93
198 772.43% 872.43
199 782.02% 882.02
200 791.73% 891.73
201 801.53% 901.53
202 811.45% 911.45
203 821.48% 921.48
204 831.61% 931.61
205 841.86% 941.86
206 852.22% 952.22
207 862.70% 962.7
208 873.29% 973.29
209 883.99% 983.99
210 894.82% 994.82
211 905.76% 1005.76
212 916.82% 1016.82
213 928.01% 1028.01
214 939.32% 1039.32
215 950.75% 1050.75
216 962.31% 1062.31
217 973.99% 1073.99
218 985.81% 1085.81
219 997.75% 1097.75
220 1009.82% 1109.82
221 1022.03% 1122.03
222 1034.37% 1134.37
223 1046.85% 1146.85
224 1059.47% 1159.47
225 1072.22% 1172.22
226 1085.12% 1185.12
227 1098.15% 1198.15
228 1111.33% 1211.33
229 1124.66% 1224.66
230 1138.13% 1238.13
231 1151.75% 1251.75
232 1165.52% 1265.52
233 1179.44% 1279.44
234 1193.51% 1293.51
235 1207.74% 1307.74
236 1222.13% 1322.13
237 1236.67% 1336.67
238 1251.37% 1351.37
239 1266.24% 1366.24
240 1281.27% 1381.27
241 1296.46% 1396.46
242 1311.82% 1411.82
243 1327.35% 1427.35
244 1343.05% 1443.05
245 1358.93% 1458.93
246 1374.97% 1474.97
247 1391.20% 1491.2
248 1407.60% 1507.6

 

We're not talking about average.
But realized gain expressed in % over 6 months.