Assume I have done 8 trades and calculated the profit (or loss) of each trade:
Balance PnL 100 102 2.00% 105 2.94% 103 -1.90% 101 -1.94% 98 -2.97% 97 -1.02% 99 2.06% 100 1.01%
As one clearly can see I do not have any profit or loss since my balance is back at my starting point. But if I sum up all the single p/l it looks like I would have gained 0.18% which is not the case. How do I have to sum up all returns correctly? I know I simply could calc the p/l on the first and the last row but I really want to know if there is a way of correctly summing up returns?