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Jim Dean

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Joined: 9/21/2006
Location: L'ville, GA

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Subject : RE: ATM RS Boost Up 16.92% in 3 Days
Posted : 4/14/2021 9:05 AM
Post #48103 - In reply to #48102

You're completely correct, Tony. Even if you consider 2x margin as "lowering" the committed capital, the actual return for that collection of trades is 2x 2.49% = 4.98%

I think someone made the invalid assumption that you can just add all the percentages.

Correct math works like this:

numerator = sum of all P/L values
denominator = sum of all (Entry Price * Quantity) values

do the division, multiply by 100 = 2.49%
(2x margin doubles it to 4.98%)


[Edited by Jim Dean on 4/14/2021 9:07 AM]

Deleting message 48103 : RE: ATM RS Boost Up 16.92% in 3 Days


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