mikebmassey > Blogs

Update on ROI

Good afternoon,

In the last two weeks, we have rolled out two improvements to the TradeKing Community that we are pretty pumped about: our return on investment (ROI) measurement and the TradeKing Leaderboard. We hope you're excited about them, too.

Since developing the ROI feature, we have been monitoring the accuracy of the return numbers. We learned yesterday morning that there were some anomalies in our 6-month calculation, dealing with account transfers from other brokerage firms. We were not databasing the appropriate information to account for this activity prior to December 2007.

Thus, accounts that transferred money from another broker prior to December display an inaccurate 6 month ROI calculation. As a result, we have removed the 6 month ROI figure from the Community and will display it again once we have 6 months of complete data, which will be in June. Until then, we will focus on ROI for 1, 5 and 15 days and 1 and 3 months.

As you know, we are striving to provide the best and most comprehensive product we can, and apologize for any inconvenience this issue may have caused. Please drop me a note with any feedback you have on the Community at community [at] tradeking.com. Your input is what keeps our wheels turning.

Be good,
Mike

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Posted by mikebmassey on 02/26/08 at 06:26 AM

Tag It | 1 user tagged it: ROI, Leaderboard

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element6

Member since: Nov 06

5 Day 3.10%
15 Day 0.75%
1 Month 12.95%
3 Month 30.35%
6 Month 7.07%
As of: 01/08/09
How is this calculated?
Trades 131
Trade Notes 13
Blog Posts 22

Age: 30's
MN
element6
Where is the leaderboard?  Is there link? Not rolled out yet?
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spshapiro

Member since: Apr 06

Trades 73
Trade Notes 0
Blog Posts 13

Age: 60's
spshapiro
I would be curious to see the methodology for your calculation of ROI.  I have done it for myself for the last fifteen years and your numbers don't agree with mine.  To start I am listed as having traded 48 times.  I have made 29 trades this year; 228 last year, and the 48 number hasn't changed from when I first saw it posted, although I traded at least a half a dozen times since then.
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Casey

Member since: Jul 07

5 Day 2.48%
15 Day 6.13%
1 Month -7.50%
3 Month 5.81%
6 Month -30.98%
As of: 01/08/09
How is this calculated?
Trades 518
Trade Notes 24
Blog Posts 5
Sales
Age: 30's
TX UNITED STATES
Casey
I would also be interested in learning how the calculations are being done. Are they a combination of both realized and unrealized gains for the given time periods?
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WallStreetKing

Member since: Mar 07

Trades Not Shared
Trade Notes 41
Blog Posts 0
Serving Others
Age: 40's
NC UNITED STATES
WallStreetKing

I have to apologize to everyone for being one of people transferring from another online brokerage and messing up the ROI.

I am glad that I did transfer. and sorry if I caused any inconvenience to the IT Department. I am also very glad that everyone was able to recognize the problem and come up with a solution.

Not only is the customer service doing very well, lets give a shout out to the IT guys who keep this website moving. Thanks for the hard work and making what seems to be impossible requests come true.

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mikebmassey

Member since: Mar 06

Trades Not Shared
Trade Notes 0
Blog Posts 9
Analyst
Age: 20's
Fort Lauderdale, FL UNITED STATES
mikebmassey
element6,

You can view the leaderboard from the Community homepage. It's on the left hand side. We'll be rolling out a larger, more expansive leaderboard in a few weeks.

Spshapiro,
ROI is calculated using the Modified Dietz method. The inputs are the beginning and ending values of your portfolio, as well as any cash flows in or out of your account, weighted for the amount of time in the period. So, it's really independent of the amount of trades you have made. However - if you have specific questions about your account, please send me a private message and I can look into it for you.

Be good,
Mike

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