Rate of return is a metric that many traders and investors fascinate and obsess about. There is good reason for this as it is a metric that informs us how good our trading system and strategy is.
Calculating a true rate of return is not simple as it needs to take account of deposits and withdrawals. The return then needs to be calculated over different time periods, with annualised being the most widely used.
For detailed information about how Trading AtoZ utilises rate of return then refer to our section about trading journals.