Discrepancy between year to date ROI and sum of monthly ROI

[Terrence Brannon]

On this signal -<Deleted>

We see monthly gains of 1.36, 45.08, 78.03, 12.48 which adds up to 136.95. Why does the year-to-date column say 194.49%

[Onno Rijkers]

Terrence Brannon:

On this signal -<Deleted>

We see monthly gains of 1.36, 45.08, 78.03, 12.48 which adds up to 136.95. Why does the year-to-date column say 194.49%

The montly gains is referenced by your balance at the start of each month, while the YTD column references your balance at the start of the year.

Example:

You start the year with a balance of $100. For 3 months in a row you make 10%:

January: $100.00 + 10% becomes $110.00

February: $110.00 + 10% becomes $121.00

March: $121.00 + 10% becomes $133.10

Adding up the monthly gains (in %) would give you a total profit of 30%

The YTD profit ($100.00 becomes $133.10) results in a profit of 33.10%