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"Average monthly profitability %" in Signal Provider Contest
 Post subject: "Average monthly profitability %" in Signal Provider Contest Post rating: 0   New post Posted: Sun 15 Jun, 2014, 21:12 
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User rating: 2
Joined: Tue 16 Aug, 2011, 19:01
Posts: 70
Location: ItalyItaly
Hi Support,
if I may give a hint, I like suggest a different way to calculate
"Average monthly profitability %" in Signal Provider Contest.
The idea is to consider as Total capital, all capital used during the six or twelve month.


For example on 6 months if the

Total P.& L. ($) = 700 000

then the

Total capital is 100 000 * 6 = 600 000 $

so the "Average Monthly Profit %" = ((700 000 / 600 000) * 100) /6 = 19.44%



Instead the actual "Average monthly profitability %"
is ((700 000 / 100 000)*100) / 6 = 116,6 % ,

this way a Subscriber could think erroneusly that with an initial capital = 100 000 $
the "Average monthly profitability %" could be 116,6% and this could be a disaster for
the Subscriber, in fact traders with previous figures have even Drawdown around 80k and 90K.



Best regards,
Frank


 

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