Need some help making Growth Index

Oct 09, 2010 at 09:10
664 Görüntüleme
1 Replies
arsa
forex_trader_1318
Oct 02, 2009 zamanından beri üye   8 iletiler
Oct 09, 2010 at 09:10
Hi guys,

Now i have been reading about how to make an index to see real account's growth.

I use % risk per trade. So compounding is rather important here.

Now its easy to track results on week to week basis-> (new balance/old balance) basically :)

But what if you want withdraw money or deposit them. Then balance changes immediately. That wouldn't be a problem if we'll look just to weekly growth in percentage and then add those % to index. but then there's a loss compounding.

e.g. 1% from 100 is 1, but if you withdraw 10 bucks, then your 1% is just 0.9 $. and if you'll look into growth its still growing but not at the same speed coz your money risk decreased.(compounding degree decreases)

SSoooooo... how to ignore deposit/withdrawal and keep track of real growth? :)

hope that makes some sense :) i want to make excel sheet for this purpose :)
arsa
forex_trader_1318
Oct 02, 2009 zamanından beri üye   8 iletiler
Oct 09, 2010 at 09:24
here's what i mean with compounding:

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