How is ROI calculated at cTrader?

According to the Global Investment Performance Standards (GIPS), cTrader Copy applies the time-weighted ROI calculation method (TWR).

The TWR method supposes that cash inflows, cash outflows, and amounts invested over different periods have no impact on the resulted value.

The history of the account is divided into sub-periods, so each time a new deposit or withdrawal occurs, a new sub-period is formed. The end of the day also forms a new sub-period. The ROI of each sub-period is calculated using the following formula:

Rn = (Equity at the end of the sub-period – Equity at the beginning of the sub-period – Deposits + Withdrawals) / Equity at the beginning of the sub-period

To apply the TWR method, combine the ROI for sub-periods, by compounding them together, resulting in the overall period ROI.

TWR (%) = ((1+R1)(1+ R2)…(1+ Rn) – 1)100% where R1 , R2 ,… Rn is ROI for sub-period.

For more information and calculation example visit: https://help.ctrader.com/ctrader-copy/roi-calculation/#time-weighted-roi