Calculating Performance (%)

Discussion in 'Trading' started by Babak, Jun 12, 2003.

  1. Babak


    I know this may be a dumb question but how do you go about calculating your account performance when it isn't cut and dried (start with funds, trade and end with funds)?

    What I mean is, when you have additional deposits to your account and/or withdrawals as well as profits/losses during multiple time periods (years)?

    Currently I'm using the XIRR function in Excel but I'm not sure if it is correct or perhaps the best way.

    With XIRR I start with a negative (starting capital) then put any withdrawals as negatives and any additions as positives. Then the monthly profits/losses from trading are also +/- along with the corresponding dates. Then end with the current acct balance as a positive.

    Like this:

    11-Apr-01 -$100 starting capital
    15-May-01 $55 trading profit
    15-Jun-01 -$75 withdrawal
    15-Jul-01 $5 trading profit
    15-Aug-01 -$75 trading losses
    15-Sep-01 $35 addition to acct
    15-Oct-01 $20 addition to acct
    15-Nov-01 -$12 withdrawal
    15-Dec-01 $15 trading profit
    31-Dec-02 $120 ending capital

    How do you calculate this?

    TIA :)
  2. What happened to your journal?
  3. Biog


    One suggestion: calculate a starting NAV value for your performance. When you add or withdraw money, think of it as buying/selling shares at current NAV value.
  4. Biog


    How did you come up with the ending capital at $120? Given those numbers above...:confused:
  5. Babak


    Biog, I was just making an example and plugging in numbers right and left without a care :p

    I guess you can say between Dec 15 '01 and Dec 31 '02 there was some more profit/losses. Anyway, it was just an example!! :D
  6. Biog


    OK, thats makes sense...thanks.
  7. Biog


    I changed the 1st and last number for this example of a way to calculate NAV with additions and withdrawals:

    11-Apr-01 +$100 starting capital NAV:$10 /10 shares
    15-May-01 $55 trading profit NAV: $15.50 /10 shares
    15-Jun-01 -$75 withdrawal NAV: $15.50 / 5.16 shares
    15-Jul-01 $5 trading profit NAV: $16.47 / 5.16 shares
    15-Aug-01 -$75 trading losses NAV: $1.94 / 5.16 shares
    15-Sep-01 $35 addition to acct NAV: $1.94 / 23.20 shares
    15-Oct-01 $20 addition to acct NAV: $1.94 / 33.51 shares
    15-Nov-01 -$12 withdrawal NAV: $1.94 / 27.32 shares
    15-Dec-01 $15 trading profit NAV: $2.49 / 27.32 shares
    31-Dec-02 $68 ending capital

    NAV beginning: $10.00
    NAV Ending: $2.49


    Just an idea for calculating...
  8. Babak,

    Hi. Why do you ignore me? I respectfully asked a question. Even Johnny Rotten answers all questions. I really want to know what happened to your journal. Why did you stop?

    Please don't be rude. Thank you.
  9. gms


    From what I recall reading in the forums, Aaron Schindler seems to have a grasp on how to perform these types of calculations.
  10. BABAK- I asked the same questions about a year back. Do a search for that link. Or better yet, just PM Aaron. He answered all my questions on the subject.

    Good trading.
    #10     Jun 13, 2003