On the TOS page, the System Return (commissions included) is listed as 51.7% for the system "The Fusion".
However, on the system page for "The Fusion", the graph indicates that the equity w/ commissions is $13684, and the model account status indicates a starting equity of $15000. This is a loss of $1316, or 8.7%.
This is a major inconsistency. Which one is correct? Is the system return a 51.7% gain, or a 8.7% loss?
Hi, Ben:
The stat you are referring to on the TOS page shows the raw returns - without commissions or fees. The main system page shows returns with commissions and subscription fees included.
Matthew,
Thanks for the quick response.
If the TOS page "system return" is "raw return", then there are two errors:
1) Documentation error. The TOS page says that system return includes "typical brokerage commissions, autotrading fees (if any), and system subscription costs", but your response says that it does not include commissions or fees.
2) The reported TOS system return for my system is incorrect. The system page reports a total system equity of $15929 and a starting equity of $10000, which is a raw return of 59.2%. However, the TOS page says that system return is only 45.5%.
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Hi, Ben -
You’re absolutely right. I was smoking crack. There is no other way to explain how I got so much so wrong in one single forum post.
So… it turns out that the Percentage Return number was indeed meant to include system subscription fees and commission costs, just as the page said.
Thanks to your persistence, I discovered the following error: systems where the NFA doesn’t allow us to annualize returns (those systems with fewer than 365 days of trading history) must show an arithmetic return rate (i.e. not compounded). However, when we calculated arithmetic returns, we used the wrong brokerage commission cost structure.
This is now fixed, but it may be about 24 hours or so before all the brokerage commission expenses can be recalculated for systems that are younger than 365 days old.
Matthew
