Mathew I believe it would be better to change the way you are displaying % gained. Take Extreme-os for example. The most popular system. In one area it shows 264% and the other area it shows 136%. That is such a huge spread how does one know wich one to use? Thanks
One is compound return. You are correct; I have been meaning to make both values the same (I will use compound for both).
See the guide for advanced statistics, p.46, remark 1. In the advanced statistics, daily values, full history you see for extreme-os
Annualized return (arithmetic extrapolation) 2.669
Compounded annual return (geometric extrapolation) 1.364
Extreme-os is compounding, so the last estimate is more appropriate. This depends on the system.
Thanks Jules. It is an astute point that the correct stat to use depends on the system and its trading style. That said, I should at least properly label both stats so that traders can make an informed decision about which is more applicable.
