This is the TimeToTrade help wiki. Use the TimeToTrade Trigger Trading Technology™ to execute your trades when Price, Candle Stick, Trend Line, Volume and Technical Analysis chart conditions are met - no coding required. Trade directly in the world’s global markets. Backtest your Trading Strategies. Calculate your UK HMRC Capital Gains Tax liabilities. Manage your Investment Club.
Internal Rate of Return
The Internal Rate of Return (IRR) is a Money Weighted Return metric, which is expressed as a percentage. It enables investors to judge financial performance based on cash flows such as money deposited, varying investment returns and money withdrawn over a defined time interval period.
The Internal Rate of Return (IRR) on an investment, is expressed as an interest rate received from a series of cash flows for a defined period. The Annual Rate of Return (ARR) is based on a yearly interval time period, whereas the Monthly Rate of Return (MRR) for example is based on monthly interval time period.
Internal Rate of Return (IRR) can be defined as the rate of return that can be earned on invested capital over time i.e. the yield on an investment. For example, if you invested money in a Savings Account which guaranteed a fixed yearly interest payment of 5%, then the Annual Rate of Return for that Saving Account would be 5%.
Internal Rate of Return (IRR) calculations are commonly used by investors to determine the rate of return for investments that generate varying returns over time. It enables investors to make 'apples for apples' comparisons of two completely different investments or investment performance profiles, by establishing the Internal Rate of Return for each investment. The investment opportunity with the highest Internal Rate of Return, assuming execution risk is equal, is likely to generate the best return on capital invested.
Stock market investors and funds use Internal Rate of Return (IRR) calculations to compare their performance to indices or other investors / fund, as it overcomes the limitations associated with using Time Weighted Return metrics, such as the Unit Valuation System. Although the Internal Rate of Return (IRR) provides an excellent mechanism for determining your actual rate of return and comparing performance, it is not suitable for managing day-to-day investment fund valuations, managing the inclusion or exclusion of expenses and apportioning ownership based on the buying and selling of units; the Unit Valuation System is best suited to this task.
Mathematically the Internal Rate of Return (IRR) is defined as any discount rate that results in a net present value of zero for a series of cash flows. Internal Rate of Return (IRR) is based on the same mathematical principles for determining the Net Present Value (NPV). NPV shows the value of future cash flows discounted back to the present by some percentage that represents the minimum desired rate of return. IRR on the other hand, calculates the break-even rate of return. Most investors tend to use IRR calculations rather than NPV calculations, as IRR is represented as a percentage and therefore easier to understand.
It has never been easier to execute your trading strategy. Our Trigger Trading Technology ® means you can now automatically execute your trades directly in the world’s global markets.
You need never miss a trading opportunity again!
Do you want to:
- buy when your technical analysis chart conditions are met? Really buy, not just get an email or sms alert?
- or sell when a support trend line is broken?
- or back-test your strategy going back as far as 30 years?
TimeToTrade's Trigger Trading Technology™ is truly game changing. It gives you a trading advantage. The power to take your trading to a new level.
Open a FREE TimeToTrade account today to:
- Trade UK, US and European Shares - apply now
- Execute trades when your Price, Candlestick, Trend Line, Volume and Technical Analysis chart conditions are met using the Trigger Trading Technology® - learn more - help video
- Email and SMS Trigger Trading™ Alerts - learn more
- Trade Off The Chart - learn more
- Back Test Trading Strategies with up to 30 years of historical data - learn more
- Create Simulated Trading Accounts to test your Trigger Trading™ Strategies - learn more
- Real time Forex, UK, European and US stock market data - learn more
- 170+ Technical Analysis and Candlestick Pattern Indicators - learn more
- All the tools you need to set up and run a successful investment club - learn more
- Manage your Portfolio and calculate UK HMRC Capital Gains liabilities and SA 108 CGT Tax Returns - learn more
- Create Trading Competitions for you and your friends - learn more
- Apply for a trading account today to get the Live Account Features - apply now
Apply now to try our superb platform and get your trading advantage.
The information and data provided is for educational and informational purposes only. Interpretation and use of the information and data provided is at the user's own risk. All information and data on this website is obtained from sources believed to be accurate and reliable. However, errors or omissions are possible due to human and/or mechanical error. All information and data is provided "as is" without warranty of any kind. We make no representations as to the accuracy, completeness, or timeliness of the information and data on this site and we reserve the right, in its sole discretion and without any obligation, to change, make improvements to, or correct any errors or omissions in any portion of the services at any times. Past performance is not a guarantee of future results. Trading carries a high level of risk to your capital and can result in losses that exceed your deposits. It may not be suitable for everyone so please ensure you fully understand the risks involved.
All services are provided by Mercor Index Ltd. TimeToTrade is a trading name of Mercor Index Ltd (a company registered in England and Wales under number 9479466). Our Registered address is 1st Floor, Aldermary House, 10-15 Queen Street, London, EC4N 1TX. Mercor Index Ltd is authorised and regulated by the Financial Conduct Authority number 679941.
The trading services offered by Mercor Index Ltd are not available to residents of the United States and are not intended for the use of any person in any country where such services would be contrary to local laws or regulations. Subscriptions to TimeToTrade products are available if you are not eligible for trading services.