Decision Calculations

Overview of the calculations used by decision recipes to determine position value.

Rate of Return Calculation

Rate of return is always calculated as max profit / max loss for all position types, where max loss is defined as the theoretical risk less any premium received.

% Premium Calculation

The formula for % premium increase/decreased is:

Where change percent is equal to the net change in position value divided by the openPrice of the position, defined as:

The definition for markClose calculations of individual position types can be found here.

Return % Calculation

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