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Geometric Average
 Post subject: Geometric Average Post rating: 0   New post Posted: Wed 17 Aug, 2011, 12:33 
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User rating: 2
Joined: Tue 16 Aug, 2011, 19:01
Posts: 70
Location: ItalyItaly
Hi Support,
I suggest, if you like, to show in the "General" Tab of Trader's page, among the other statistics, even the "Geometric Average" (even called "Geometric Mean").
The reason for this is that Geomatric Average takes higher consideration low values (tipically losses) than Aritmetic Average.

Let's see formulas:

if we have n numbers
----------------------------------------------------------
everyone knows

Aritmetic Average (Mean): Sum_of_n_Numbers diveded by n


----------------------------------------------------------

Geometric Average (Mean): n-th root of Product_of_n_numbers


=====================================================================

Let's see some examples:

Example1:

Equity_end_of_month_Contest1 = 180000 $
Equity_end_of_month_Contest2 = 220000 $
Equity_end_of_month_Contest3 = 80000 $
Equity_end_of_month_Contest4 = 90000 $
Equity_end_of_month_Contest5 = 150000 $


Aritmetic Average = 144000

Geometric Average = 133728

----------------------------------------------------------

Example2:

Equity_end_of_month_Contest1 = 500000 $
Equity_end_of_month_Contest2 = 250000 $
Equity_end_of_month_Contest3 = 65000 $
Equity_end_of_month_Contest4 = 5000 $
Equity_end_of_month_Contest5 = 170000 $


Aritmetic Average = 198000

Geometric Average = 92864




Best regards,
Frank


 
 Post subject: Re: Geometric Average Post rating: 0   New post Posted: Thu 18 Aug, 2011, 06:19 

User rating: -
Very good point.


 

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