Boletti9090 Great points, there are so many different ways to determine returns!
Here's how we do it for each timeframe:
(Total Portfolio Value Now - Old Portfolio Value - Deposits + Withdrawals) / Old Portfolio Value
So we do ignore deposits and withdrawals. And if you are trading with 100 MPH or 1 Million MPH, your returns are treated equally.
However there are some limitations with this method:
- Users that keep more of their portfolio in cash rather than investing have lower returns, even if they make better trades.
- Users who nearly go bankrupt with a leveraged position can have 1,000% returns, when in reality they are losing money on the trade. Example: they entered with 100 MPH, trade goes to 1 MPH, then to 20 MPH. We look at 1 to 20 that hour, not the fact they actually dropped from 100 to 20.