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Old August 9th, 2008, 12:02 AM   #1 (permalink)
jhill3535

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Join Date: Mar 10, 2008
Location: Arkansas USA
Posts: 17,411
Default Staker's ROI vs APR


It seems to me that knowing you APR (annual % rate) is much more important than knowing your ROI.

I guess they are both usefull.

If you know you have a staker ROI of 10%, you can look at an investment and ask yourself if you are willing to invest in this person for this length of time to earn 10% and if the answer is yes you invest.

Saying I have a 10% ROI on my staking is really useless for future planning/expectation. I may know that I can expect 10% ROI, but I don't that doesn't take into account the number of times you can turn the original bankroll + compounding interest.

APR seems like it would be a much better measure to predict future expectation. And it is probably also a better measure for historic performance as well.

For instance, my staking ROI for all completed BAPs is sitting at 11.16% right now. That is based on a total staked in those BAPs of $11,792.56. So you can see that I have made $1,316.64 in profit off of those investments.

Tomorrow will be my 5 month anniversary, I started with a average staked out of $2,000. Since then I have increased my staking to around $4,200. This was done partially from profit, partially from my playing bankroll, and partially from depositing when I see a good opportunity that I don't have the proper roll online to take advantage of (staking is going well, and I am looking at moving some more of my money online to take advantage of this fact). So my average amount staked out over this time period is about $3400.

So if you take those numbers, I have still made $1,316.64 in 5 months, which is equivalent to $263.33 per month or $3,159.94 per year. And I am doing that off of an average amount staked out of $3400 which gives me an APR of 92.94% or about 7.745% montly rate of return.

I think that APR is a much better measure of how well you are really doing as a staker.

What do you think?
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