I've been investing and trading a little bit and in my portfolios performance overview I saw TWR (time weighted returns) and MWR (money weighted returns). My MWR is 26.82%, whereas my TWR is -515.00% YTD. My question is, how is this possible? I will give you a bit more backstory: When I tested my new broker I only made a $500 deposit and because I accidentally placed a market order instead of a limit order, my account got blown up by one trade and I was at $-1500 for a couple weeks. This was my first and by far biggest loss. I have since deposited tens of thousands in the months that followed and consistently make trades where I double or triple my money but for some reason my TWR is at a negative 515%. Can anyone explain this to me? After probably more than a hundred trades with probably no more than 10 losing trades and far more money made than lost, I am really confused how this is possible.
Most of my money is in funds, and about 20% goes towards short term trades, and in those apart from the very first one, I have never had a (relative to then account size) big loss and my winning trades have individually as well as collectively far outweighed my losing trades.