Fine-tuning your trading strategy is all about making informed decisions. Our new Benchmarking feature empowers you to do just that by letting you easily compare your performance against a market index.
What is Benchmarking?
Benchmarking is the practice of comparing your trading results to a standard reference point. In this case, you’ll be able to benchmark your performance against a widely recognized market index, like the S&P 500 or the SPY (an ETF that tracks the S&P 500).
How Does it Work?
Benchmarking in our platform is straightforward:
- See Your Cumulative Returns: Go to the “Reports” section and view your “Accumulative Return $” chart.
- Choose a Time Period: Select a timeframe that aligns with your trading goals, whether it’s a day, week, month, or even a year.
- Pick Your Benchmark: Decide which market index you want to compare against (e.g., S&P 500 or SPY).
- Visualize Your Performance: Our intuitive charting will display two lines:
- Benchmark Line: This line represents the performance of the index you selected.
- Your Performance Line: This line tracks your P&L (profit or loss) or equity curve (total account value) over the chosen period.
Benefits of Benchmarking
- Gain Perspective: Benchmarking allows you to see how your trading strategy performs relative to the overall market.
- Identify Opportunities: By visualizing your performance alongside the benchmark, you can identify areas for improvement and adjust your strategy accordingly.
- Set Realistic Goals: Understanding how your performance stacks up against a market benchmark can help you set realistic goals for your trading activity.
Going Beyond the Benchmark
Remember, outperforming the market consistently is a challenging feat. However, using the benchmark as a reference point can provide valuable insights into your trading effectiveness.
Ready to take your trading to the next level? Get started with Benchmarking today!
