Since April 2024 Deposits $ 154,000 Withdraws $ 6,000 Trading $ 18,371 Balance $ 166,371 Profit $ 18,371 + 11.93% Am I missing anything or is +11.93% correct. Thanks
Since I am facing some uncertainty on this too. Here is my thought. 1. Calculate the annualize figure using simple ratio 2. Track the numbers of days(from entry to exit) in each trade and annualize it.
TurboTax is not going to provide the kind of data the OP is asking about. Can't answer that. 18,371.00 is indeed 11.93% of 154,000.00. But those numbers are not enough information to determine your rate of return for a particular period of time. It makes a big difference when you deposited funds and when you withdrew funds. And it matters when you closed each transaction. If you deposited $154,000 in April, and you did not withdraw the $6,000 until a few weeks ago, then your rate of return is probably pretty close to 11.93%. But if you only deposited $14,000 in April, and then you deposited $70,000 in late May, and another $70,000 in early July, then your rate of return is probably quite a bit higher, because you probably made a significant portion of your gains at a time when you had less capital in the account. There is more than one way to calculate total return for a given period of time. All of them attempt to account for these variables in one way or another. If you start your account with $10,000 on Jan. 1 and then it is worth $11,000 on Dec. 31, and you never added any money or took any money out during the year, then, yeah, your rate return is 10%. But if you added any money or took any money out, at any time during the year, then the calculations get really complicated really fast.
You need to use Time Weighted Rate of Return to account for the moment your inflows outflows occurred. IBKR states your performance using TWRR. So should your broker. Else you can do the math yourself by computing the return for each sub-period between inflows and outflows and compound those returns. Tedious, but doable. Investopedia is your friend: https://www.investopedia.com/terms/t/time-weightedror.asp
Your brokerage will and should give you their standard way to calculate profit, which is most likely as @taojaxx said
It's the most conservative way of doing it, assuming the withdrawal was recently. The biggest issue is that your annualized return would be over 2x your profit, since you have only traded 6 months (assuming you are trying to express an annualized %)
It doesn't matter how you calculate as long as - you are not sitting for an examination - you are withdrawing $$$ from your trading account.