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Annualized Return |
This is the rate of return that
the service could be expected to earn if its performance for the
rest of the year matches its performance to date. If the latest data
is for this year, it is shown as the Current Year Annualized Return.
If the latest data is prior to that, it is shown as the Latest Year
Return. |
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Annual Return |
The percentage annual return is
based on the change in value of the VAMI. The value of the VAMI begins with
a hypothetical
$1,000 investment. This amount is then compounded using the
service's monthly
returns from January through to December. The actual percentage
change in the value of the VAMI from one year to another
(effectively, from the December value of the previous year to the
latest value in the current year) gives the Annual Return of the
service. |
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AutoTrade |
This tells you whether or not you
can AutoTrade the service's recommendations. |
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Bank - Default
Trading Profile |
This is the amount of initial
capital that was used to generate the service's results. For most
services this is set at $20,000, though there could be circumstances
in which this is altered, e.g., when a service trades a particular
number of stocks per trade. In that case, the Default Profile will
be adjusted accordingly to reflect this. |
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Bank - Your
Trading Profile |
This is where you can enter your
capital amount (that is, your starting bank) in order to personalize the
service's results. When you then press the recalculate button, the
results will then be recalculated based on your capital amount. |
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Brokerage/Trade -
Av |
This is the average brokerage you
would have paid per trade. This gives you some idea of what your
costs will be in order to replicate the service's results though, as
all our results are net, brokerage has already been taken into
account. |
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Cost/Trade - Av |
This is the average cost per
share that the service traded, either short or long. For option
services, it is the average cost per option contract (bearing in
mind you have to then multiply that 100 to get the actual cost of
the trade). |
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Coverage |
This section tells you two
important things about your trading profile:
First, it tells you what percentage
of the total number of trades done by the service per month you
would have been able to do given your current Trading Profile. To
calculate this, it takes the average number of trades done by the
service each month and then compares it to the number of trades per
month you would be able to do based on your % Per Trade. For
example, 5% Per Trade would allow you to do 20 trades/month, 10% Per
Trade would allow you to do 10/moth, etc.
Second, it tells you what
percentage of the average number of open positions held by the
service you would also have been able to maintain. Just because you
can do all the trades the service does (the first part above)
doesn't mean you'll be able to maintain them as open positions.
First, we work out the average number of Open Positions held by a
service, and then compare that figure with your % Per Trade in the
same way as we did in the above example. |
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Downside Deviation |
This measures downside volatility
against a predetermined Minimum Acceptable Return (MAR). The MAR
used in our calculations is 5%/annum or 0.42%/month. The Downside
Deviation is a measure of the degree to which the service's results
have deviated from that level of return, but only on the downside.
In other words, it doesn't measure positive performance, only
returns that are LESS than the MAR. |
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