Return Rate
Return Rate Overview
RockFlow calculates returns using the industry-standard "Time-Weighted Return" (TWR) methodology. This approach divides the investment period into daily intervals, calculates daily returns individually, and then compounds them to determine overall performance. TWR effectively minimizes distortions from frequent deposits/withdrawals, providing a truer reflection of investment capability.
Key Advantages Over Other Methods
- Eliminates cash flow impact: Daily segmentation of capital flows reduces distortions from large deposits/withdrawals.
- Cross-period comparability: Enables flexible return calculations across periods (e.g., 1 month/1 year) for fair performance comparisons.
Calculation Formula & Examples
- Daily Return Calculation Daily Return = Daily P&L / (Starting Assets + 0.5 × Daily Net Inflow)
- Daily Net Inflow = Net Deposits - Net Withdrawals + Bonus Credits (e.g., virtual funds/stock rewards) + Transferred Stock Positions Value
- Daily P&L = End-of-Day Assets - Start-of-Day Assets - Daily Net Inflow
- Period Return Calculation (e.g., Weekly Return) Total Return = [(1+R₁)×(1+R₂)×...×(1+Rₙ) - 1] × 100% (Where R₁~Rₙ represent daily returns)
Data Rules
- Daily Cut-off Time
- Uses 9:00 Beijing Time daily, independent of trading days.
- Example: P&L occurring after 9:00 Apr 14 is attributed to Apr 14.
- Real-Time Updates
- U.S. market hours (including pre/post-market): Updates every 10 minutes.
- Non-trading hours: Displays previous trading day's data. Hong Kong returns update during next U.S. trading session.
- Return Chart Rules
- All dates show data points (0% return for non-trading days).
- Long-press to view cumulative returns for selected period (not daily returns).
FAQs
Q1: Why does my cumulative P&L show profit but my return rate appears negative?
Large withdrawals may disproportionately reduce the calculation denominator (total assets), creating inverse return displays. Refer to cumulative P&L values or contact support for detailed analysis.
Q2: When do Hong Kong stock returns appear in rankings?
Hong Kong market returns update during the next U.S. trading session (e.g., Monday's HK returns reflect when U.S. markets open Monday evening).
Q3: Which rewards are included in return calculations?
Virtual funds, cash rewards, and similar bonuses count toward daily net inflow. Reward recalls are treated as outflows. Reward issuance/recalls do not affect return rates.
Q4: Why do return rates differ across time periods?
TWR compounds returns daily. Longer periods exhibit more pronounced compounding effects, creating natural variations between period lengths.