Replies to post #21754 on ETF SWING & DAY TRADING

[jimapplesmith]

No. Use the formula I gave in the previous post.

For your example of +50% and then -25%, the correct average annual return is {(1+0.5)*(1-0.25)}^(1/2) -1 = 0.0607 = 6.07%.

For k years with returns r1, r1, ... rk, the correct average annual return is {(1+r1)*(1+r2)*...*(1+rk)}^(1/k)-1.

The post you replied to gives Excel formula for computing this.

Jim

[positiontrader]

a new idea

http://www.investorshub.com/boards/read_msg.asp?message_id=9848177