Traders and investors alike, often mistakenly base the success of their portfolios or strategies on returns alone. There is a mix of return and risk factors that should be looked at together to get the full picture. At CLEO.one we provide several proven metrics for measuring your returns since it is the key to objective comparison and mastering the strategy game.

There are several different ways to calculate return on investment. Each approach looks at different factors like initial investment, cash flow differences and number of years and combining them might give a better perspective.

We are going to consider four ways of measuring returns and look at some major implications when it comes to measuring trading success. Depending on factors that you might want to consider when evaluating your trading strategy, you will find that one method or another is preferable.

These are some of the most frequently used returns metrics available to traders and investors:

• ROR
• CAGR
• TWR
• MWR

Let’s take a look at each of them in detail:
https://blog.cleo.one/post/ways-to-measure-returns