Calculating Annual and Cumulative Returns in ProBuilder

25 Jul 2023
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This ProBuilder script is designed to calculate and display the annual percentage return, the cumulative return since the inception of the strategy, and the running percentage return for the current year. These metrics are crucial for evaluating the performance of a trading strategy over different time frames.


capital = 10000
once lastcapital = capital
runningperc = ((strategyprofit - laststrategyprofit) / lastcapital) * 100

if year <> year[1] then
    annualreturn = runningperc[1]
    laststrategyprofit = strategyprofit
    lastcapital = capital + strategyprofit
endif

alltime = (strategyprofit / capital) * 100

graph runningperc coloured(0,128,0) as "Running % Return"
graph annualreturn coloured(0,0,150) as " Last Years Annual % Return"
graph alltime coloured(128,145,150) as "All Time % Return"

Explanation of the Code:

  • Initialization: The initial capital is set to 10,000. The lastcapital variable is also initialized with this value, but only once, to keep track of the capital at the start of each year.
  • Running Percentage Return: The runningperc variable calculates the percentage return based on the profit or loss since the last recorded strategy profit. This gives a real-time update on how the strategy is performing in the current year.
  • Annual Return Calculation: At the end of each year (when the year changes), the script captures the last year’s running percentage return and updates the laststrategyprofit and lastcapital to reflect the strategy’s performance and new capital at year-end.
  • All-Time Return: The alltime variable calculates the total percentage return of the strategy from its inception relative to the initial capital.
  • Graphing: The script uses three graph functions to visually display the running percentage return, last year’s annual return, and all-time return on the chart. Each graph is color-coded for clear differentiation.

This script is a useful tool for traders and analysts to monitor and evaluate the performance of their trading strategies over different periods, providing clear, visual feedback directly on the trading charts.

Related Post

Check out this related content for more information:

https://www.prorealcode.com/topic/annual-percentage-returns/#post-93661

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What is a Snippet? A snippet is a small, reusable chunk of code designed to solve specific tasks quickly. Think of it as a shortcut that helps you achieve your coding goals without reinventing the wheel. How to Use: Simply copy the snippet and paste it into your project where needed. Don't forget to tweak it to fit your context. Snippets are not just time-savers; they're also learning tools to help you become a more efficient coder.
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