Return on Investment (ROI) is a financial metric used to measure the profitability of an investment or portfolio. ROI is usually expressed as a percentage (%).
For a portfolio, ROI represents the total return on the investments in that portfolio. It is an important metric used to evaluate the performance of an investment over a given period.
The positions of the strategies on the Traderlands Marketplace are displayed assuming an unlimited limit of concurrent positions. However, users can trade these strategies with a limited number of concurrent positions. For this reason, simulation data obtained by analyzing with a special algorithm is used in the calculation of ROI in Traderlands Marketplace Strategies.
For this calculation, we first determine the optimal number of concurrent positions of the strategy on a daily basis. On the first day of the simulation, the number of concurrent positions is taken as 5.
Traderlands' algorithm for determining the optimal number of concurrent positions analyzes each day and adjusts the value determined as a result of this analysis on the next day.
In this case, for example, if the set value is 7, the strategy works the next day with the number of concurrent positions at 7. It calculates the ROI by opening and closing trades every day and including open positions. In this way, with users with a limited number of concurrent positions, the ROI values seen on the Marketplace are more in line with the results obtained from real trades made on the exchanges.
Traderlands is the perfect platform for those who want to use and create professional and effective trading strategies.