Help understanding the ROI

Need help understanding how to get the ROI for each Index.

I was told by the Help Dest at TM that the ROI (for e.g.Trader Daily Technical Analysis ROI) could be worked out by looking at the Index All Time Performance vs BTC (Since Index Began) charts and hovering over the day. Then subtracting todays from 30 days ago. So (31 Aug )239.46% - 148.40% 31 july. Which would indicate that the monthly ROI = 91.06%.

However, if I use the ROI in the Index Holdings and Average them out the monthly ROI = 37.51%

Can anyone help explain which method is correct?

Thanks in advance

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@DarrenP agreed. There are a few key issues as I see it:

  1. Why do the indices start at a level much higher than zero? What was the historical performance?
  2. How do you calculate the ROI given the difference between the graph and the holdings, as you have raised above?
  3. Why does the BTC line graph not represent BTC’s actual price during the same time period?
  4. Why not share the full transaction history, at least for the monthly, quarterly, annual indices?

If I get answers to these questions I’ll be happy to share.

In the mean time: @TokenMetrics, @diaryofamademan are you able to clarify. These are pretty simple questions that should be easy to answer and would build confidence in your customer base I imagine. Thanks.

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Even I am having the same question. Would be great if we could get a clarification on this.
@TokenMetrics.

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@DarrenP and @Ankit_Maurya. If you take the difference between two months on the Index Holdings and calculate that return based on a $10k investment (not the initial cash value) you get a % return roughly the same as that shown on the graph for the same period.

For example: Trader Monthly Price Prediction index 1 Aug 2020 Initial Cash Value was $63,219.64, on 1 Sep 2020 it was $74,362.30. A difference of $11,142.66. When divided by a notional $10k you get a 111% return. The value of the performance graph on 1 Aug 20 was 530.80% and on 1 Sep 20 was 641.98% which is a difference of 111%.

Similar results can be found for the Trader Monthly Tech Analysis index.

If this is correct this is an odd way to represent ROI.

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Thanks mate. Now that you mention it, I recall Ian (in one of his youtube posts) mention something about a 10k investment portfolio when the actual initial cash value was showing something else. Confused the heck out of me and still does.

Thanks for the insight…Agree very odd!

Sent a message to the support team to see if they can look into it.

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Yes. Having said that, the core issue here is that a 30%+ return per month is excellent. If you did that for one month and then did nothing for the rest of the year that would be a result most fund managers and investors would dream about.

Yes totally agree again

@DarrenP, @Ankit_Maurya Darren and Ankit, you’ll notice the performance statistics and graphs were updated overnight. On first glance they look like they have sorted out most of the issues I identified. I’m feeling a lot more comfortable with the whole platform as a result.

Thanks mate :+1:

Invested for the first time this month and getting wrecked! Still a lot of days in the month to recover though. Would be happy with a breakeven.

@Bradmans_Average and @DarrenP thanks mate for your explanation. But I am still not 100% clear.

Let’s take the case of monthly price prediction from Aug1 - Sep1.

  1. Portfolio
  • Aug 1 - $63,219.64
  • Sep 1 - $74,362.30
    ROI on dollar value = 11,142.66/63,219.64 = 17.62%. I understand that the index is not for dollar value, it’s against BTC.
  1. Index values BTC
  • Aug 1 - 28.36
  • Sep 1 - 30.49
    ROI on BTC = (30.49 - 28.36) = 2.13%
  1. Index values portfolio
  • Aug 1 - 45.95
  • Sep 1 - 71.84
    ROI on index portfolio = (71.84 - 45.95) = 25.89%

How do I get this 25.89% here ?

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@Ankit_Maurya Hi Ankit. The BTC values appear (to me at least) to reasonably reflect the movement of BTC over that period of time. The line graph and increase in price in TM is pretty close to that on a tradingview chart for example.

I can’t explain the difference between the 17.62% and the 25.89%. Your maths and observations are the same as mine after I checked. I don’t know why there is a variation. It is however much closer than 24 hours ago.

@TokenMetrics, @diaryofamademan Ian are you able to comment?

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