I wonder whether anyone in the investment management business, or otherwise could advise on the best practise approach to trading account record keeping - I'm interested to learn of the standard approach to calculating performance after additions, withdrawels, interest payments etc. One way around this would be to simply to subtract addtions, add withdrawels from end of month total equity and then calculate % change in equity this way - The method however ignores flucuating total equity when positions were sized, reflecting only % changes in begining of month total equity - which I would imagine is hardly the best approach...... Many thanks in advance if anyone could offer some thoughts J-S
In my opinion, you will progress to the point where keeping a log of trades for analysis becomes trivial. Win %, Win/Loss Risk Reward Ratio or whatever you're tracking becomes pointless. All that matters is your bottom line. Your broker should be able to calculate your net gain/loss at the end of each month, so that's taken care of.