Performance calculation

I'm not sure if I have this figured out. Does this mean if I make 1,000 on a 50,000 account I've made 2% for the day? Then do a std. deviation of all the daily returns for the risk adjusted return rate?

"Each Entrant’s total Challenge period return is divided by that Entrant’s daily standard deviation to determine a risk adjusted return rate. As the daily standard deviation calculation incorporates the Account’s daily percentage change divided by the Entrant’s stated Nominal Account Value, Entrants should carefully consider this when indicating their Nominal Account Value. The winning Challenge Entrant must also have had a "reward to risk" ratio that was greater than the published MarHedge CTA Index "reward to risk" ratio during the Challenge period."


This is from their annual trading contest in case anyone's interested.

http://www.pfgbest.com/cta/cta_rules.asp

 

TAE = Total Account Equity = cash + Tbills + open trade equity

Today's return = TAE(today) / TAE(yesterday)

Step 0: decide on a nominal starting account value (NSAV)
Step 1: enter the contest
Step 2: trade for N days (until the contest ends)
Step 3: calculate (N-1) daily returns
Step 4: calculate the standard deviation of daily returns
Step 5: calculate the Challenge Period Return = TAE(end) / NSAV
Step 6: calculate the Reward to risk ratio = Step5 / Step4

easy.

You're Welcome.