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Using this formula, you don't need to track your wins just the starting capital, withdrawals and final capital? Interesting formula thanks for sharing.
Yes, if you are only interested in returns. I also track percentage drawdown, which gets a little tricky when you have cash inflows and out flows. Then, % annual return divided by % max drawdown can also be calculated, which is an important metric (over a 3 year period, it is called the CALMAR ratio).
I earned ~25% in my diversified portfolio of index funds. (Boring, I know.)
I'm still back-testing and paper-trading my machine learning algorithms, but they are consistently beating the market on an unlevered basis. I'd love to tell you what the returns were, but that is highly reliant on overlying strategy and ability to execute in the face of psychological bias.
I believe Excel's XIRR function might be an even better fit as it works for irregular cash flows. You don't need an equal number of periods in a year, transactions don't need to be on the same day, and, of course, they can be + or - in any amount.
The resulting table using XIRR is condensed compared to IRR because the zero value lines for periodic payments are not necessary. Not a big deal, I know, but if you're looking at account performance over 10 years and all you ever do is make an annual IRA contribution, it's nice to have a compact table.