New all-time return formula

New all-time return formula

Introduction

In the dashboard of our web platform, you can see your all-time performance, giving you a quick insight into your portfolio performance since joining ICONOMI. There is one slight issue with the displayed information.

The existing all-time performance formula, unfortunately, did not stand the test of time. It became apparent that the calculation it provided did not meet the expectations of you, our users. We received several questions and comments from our users, letting us know that the graph was not what they expected.

After reviewing the formula on our backend, we found that the math behind it works as expected. However, the algorithm chosen to calculate the all-time performance is not ideal. Due to this, we have decided to change the formula.

New formula

Our main goal is to give our users their correct return of investment - ROI. It is relatively trivial to calculate for users who make one deposit and no withdrawals. The problem arises when a user goes through the typical dynamic of several deposits, withdrawals, partial withdrawals, buys and sells. Because of this, the ROI formula has to be adjusted.

Here are the parameters and formula:

proceeds = selling crypto into fiat or withdrawing crypto
deposits = buying crypto with fiat or depositing crypto
reinvestments = selling crypto into fiat then buying crypto with the same money
net proceeds = proceeds - reinvestments
net deposits = deposits - reinvestments
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