Making sense of trades

English
1

Hi guys,

Something has been bothering me on the Trades section because I’m having a hard time making sense of it.

So in the Trades section I have this columns:

Proof#3
Proof#3876×29 1.41 KB

I believe they are the default.
Specially in two securities I don’t understand whats going on with the IRR.

First security:

Proof#2
Proof#2871×42 2.5 KB

On the first security I’ve bought 6 stocks, sold 5 of them first at a profit, then I sold the last share at a loss.
The IRR of the first “trade” is enormous, and it doesn’t reflect the actual profit I’ve had. IS the IRR annualized or something? and since I held those stocks for a short amount of time, that’s why the value?
What about the “NaN%”, any ideas?

Second security:

Proof#1
Proof#1884×116 5.62 KB

The second, I’ve bought 2 shares of a stock which I mistakenly prematurely sold, and then bought back those two shares and even bought some more on a later date.
But again some of those IRR’s make no sense in my head :confused:

I’m just trying to understand if I inputted something wrong, which might be causing other reports to be wrong.

Thanks

2

Yes.

The calculation sometimes fails when the numbers are too huge.

3

I guess those answers clarify stuff :grin:

Thanks @chirlu

4

for short term trades I would look at absolute profit/loss and time weighted return (not annualized). When thinking about risk/reward of a short-term trade it makes no sense to look at the possibly sky high IRR. You still have an absolute amount of money at risk. This often is the case for merger-arbitrage/risk-arbitrage and other event-driven situations, where one should not look at the annualized return for the sread to close in isolation.