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What is the rolling compounded annual ROI if you start off using .000457% ($4.57) of $10,000 over $1,095$ trades?

If you use a flat 0.000457 it would be 50.04% ($5,004.15) but if you continuously use a compounded 0.000457% it will grow every day until you reach your 1,095th trade. What is the final compounded annual ROI if you take this into consideration?

Thank you

Vidyanshu Mishra
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Jarrod Stewart
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1 Answers1

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If I understand correctly you mean that on each trade you get a 0.000457 additionally from the amount invested and that you invest the initial 10000$ plus all the benefits acquired before on all future trades.

So basically after 1 trade you have:

$$ A_1=10000(1+0.000457)=10004.57$ $$

After the second trade you have:

$$ A_2=(1+0.000457)(1+0.000457)10000=10009.14$ $$

then at the n-th trade you will have:

$$ A_n=(1+0.000457)^n10000 $$

and your ROI will be $(1+0.000457)^n$. So after 1095 trades, plug in $n=1095$ to get:

$$ ROI_{1095}=(1+0.000457)^{1095}=1.65 $$

and a final account of $ROI_{1095}10000=16492.17$ for a benefit of 6492.17$ from your initial investment.

Jesús Ros
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