Returns look wrong?

How does AlphaSet calculate returns?

Your portfolio returns are always calculated as a time-weighted rate of return (TWR). This measures the Alpha's true performance and isn't distorted by you adding or withdrawing capital.

In essence: to compute the return over a whole period, the system splits time into sub-periods (each deposit/withdrawal starts a new one), calculates each sub-period's return, then multiplies those returns together.

Why does a number that "looks wrong" usually turn out right?

Because TWR separates trading performance from your cash flows, two people can end with very different ending balances while showing the exact same % return. That's normal and by design.

Example:

• Alice puts in $1,000 in the first month and gains 10%. She then adds $2,000 and gains 5% in the second month. Ending balance: $3,255.
• Bob also puts in $1,000 at the same time and gains 10%. He then withdraws $100 to take profit. In the second month he gains 5%. Ending balance: $1,050.

Their ending balances differ, but the performance is the same — and the displayed return should reflect that.

TWR = (1 + 0.10) × (1 + 0.05) − 1 = 0.155 = 15.5% for both.

🖼️ [IMAGE PLACEHOLDER] Comparison graphic of Alice vs Bob: two different ending balances ($3,255 vs $1,050) but the same 15.5% return, illustrating why TWR isn't distorted by deposits/withdrawals. Dark background, mint accent.

When is the number normal?

• You just deposited or withdrew and the % return doesn't match the raw balance change — that's TWR doing exactly its job.
• The dashboard and exchange aren't synced in real time — a small temporary gap is normal. See [[balance-mismatch]].
• Open positions make the portfolio value move continuously.

For a deeper look at how returns react to deposits/withdrawals, see [[returns-with-deposits]].

When should I contact support?

If, after understanding how TWR works, you still believe a return is genuinely wrong, open the support chat and describe the situation (the figures you see, the dates, any deposits/withdrawals). The team will check and correct it. See [[contact-support]].