It's a little confusing. It's supposedly a trend following system but it did nothing for 3 years then suddenly exploded. I would have expected a smoother equity curve. Did anything change in the methodlogy in August?
Or put another way, at the start of August you were underperforming the index over three years, a month later you've blitzed it.
Its not an equity curve as most of the world would understand it.
I probed this in his thread when the chart didn't match his table. Once he got his excel errors sorted out I think I understand what he is presenting.
Look at the X axis - its a date axis but its not evenly spaced. The sequencing is actually numbers of trades but he's labelled it with dates.
So closed trades are listed then open trades and this is then charted. For each trade closed date he has recorded his bench mark. when it comes to plotting open positions (todays benchmark value) - you will see the bench mark flatten but the equity line incrementally climb for each open trade marked to market. On closed trades he's below his bench mark (you can see from where the equity line is when the bench mark flattens) but the open trades have a fair bit of open profit. It would be interesting to know if he has in the money stops on these or if they will eventually close below index return like the past three year history.
Any rate that's the best I could ever sort out what he was presenting.
I'll update my equity curves as I close out the big open profits - will be closing a +160%'er in the next 2 weeks.
Well done - but how do you know in the next two weeks? do you know when the trend will finish? or are you using something other than trailing stops to exit trends or is there a two week delay from an already activated trigger?
Thanks for helping out.
I'm not sure what other method you can use to present an equity curve with closed and current open trades + a comparative curve of an index.
I'll update my equity curves as I close out the big open profits - will be closing a +160%'er in the next 2 weeks.
May be just do a periodic (monthly or weekly) marked-to-market of account balance vs benchmark?
Everyone has closed and open positions at any one time...
Its not an equity curve as most of the world would understand it.
I probed this in his thread when the chart didn't match his table. Once he got his excel errors sorted out I think I understand what he is presenting.
Look at the X axis - its a date axis but its not evenly spaced. The sequencing is actually numbers of trades but he's labelled it with dates.
So closed trades are listed then open trades and this is then charted. For each trade closed date he has recorded his bench mark. when it comes to plotting open positions (todays benchmark value) - you will see the bench mark flatten but the equity line incrementally climb for each open trade marked to market. On closed trades he's below his bench mark (you can see from where the equity line is when the bench mark flattens) but the open trades have a fair bit of open profit. It would be interesting to know if he has in the money stops on these or if they will eventually close below index return like the past three year history.
Any rate that's the best I could ever sort out what he was presenting.
Thanks for clearing that up. So where it goes parabolic, it's not actually measuring total portfolio return just open return?
It's total return (closed + open profits). As at today's close my SMSF portfolio is sitting at +84% return (closed + open profits).
Got it. Thanks. I understand now.
I'd suggest doing what skc suggested might give a more real representation of when returns were achieved.
It's total return (closed + open profits). As at today's close my SMSF portfolio is sitting at +84% return (closed + open profits).
I'll update my equity curves as I close out the big open profits - will be closing a +160%'er in the next 2 weeks.
How is everyone tracking for FY18 SMSF returns?
Does anyone have any suggestions on best way to calculate CAGR SMSF returns? Should this be after all SMSF expenses? Insurances, audit/accountant fees and taxes?
How do we accurately calculate CAGR when when I still have employer contributions for the three members of the SMSF?
Cheers
leyy
How is everyone tracking for FY18 SMSF returns?
Does anyone have any suggestions on best way to calculate CAGR SMSF returns? Should this be after all SMSF expenses? Insurances, audit/accountant fees and taxes?
How do we accurately calculate CAGR when when I still have employer contributions for the three members of the SMSF?
Cheers
leyy
Thanks Junior.I suggest calculating performance on both a before and after cost basis. I would include the following in your fees/costs:
* Accounting and audit
* ATO Levy & ASIC Fee
* Any other administration fees
* MER/ICRs if using ETFs or managed funds
Including the above costs allows you to assess performance compared with investing through an industry or retail fund, which I think is important as there are pros and cons of using an SMSF. A major 'con' being running costs.
I would exclude insurance premiums, as this is a separate product which can be funded through super or personally, and is not related to investment performance.
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