$ qubo learn portfolio/03

Measuring real performance

A portfolio that went from $10,000 to $15,000 did not necessarily gain 50%: you may have added $4,000 along the way. Real performance separates market gains from money added or withdrawn.

The time-weighted return removes the effect of deposits and withdrawals. It measures how the assets themselves performed, and is how funds report results.

The money-weighted return accounts for when you added or removed money. It measures your own experience: adding a lot just before a fall lowers it.

Comparing your return with a simple benchmark, such as holding only BTC over the same period, puts the number in context.

// rule to remember

// your turn

In Portfolio, compare your 3-month real performance with BTC over the same period.

Educational content only. Not investment advice. Past data does not predict future results. Risk disclosure