Skip to content
GetProfitable
Search
Dictionary

Performance reporting

The presentation of investment results, where choices about period, fee basis, benchmark and composition can change the picture without changing a single trade.

Four questions expose most of what matters. Is the return net of all fees or gross? Is it time-weighted-return or money-weighted-return? What benchmark, on what return basis? And does the record include every account run in the strategy, or a selection?

Common distortions include start dates chosen at a trough, simulated results presented alongside live ones without clear labelling, composites that quietly drop closed accounts, and annualised figures computed from periods shorter than a year.

Good reporting shows the full history, states the methodology, publishes risk figures such as max-drawdown alongside return, and separates live from backtested. Anything less is marketing. See gips-standards and backtesting.

Related: gips-standards, time-weighted-return, money-weighted-return, max-drawdown, backtesting, benchmark

See it drawn

Original diagrams for the ideas on this page. Illustrative, not real market data.

An equity curve and its drawdownAn account balance rising over a year, falling from a peak to a trough, then climbing back to the old peak.ACCOUNT EQUITY$20k$12k$8k024681012TIME (MONTHS)PEAK $16,000TROUGH $12,000DRAWDOWN−25%RECOVERY
Equity curve and drawdown. An account balance plotted month by month. The fall from the $16,000 peak to the $12,000 trough is a 25% drawdown, and the shaded area lasts until the balance climbs back to the old peak.

Educational only, not advice. Spotted an error? Post in Site Feedback.