CAGR

CAGR (Compound Annual Growth Rate) on Tradomate.one calculates the smooth annualized growth rate of a trading strategy over a specified backtesting period. It serves as a crucial metric for algorithmic trading evaluation, with a higher CAGR indicating sustained growth and a robust strategy.

This quantitative benchmark allows traders to assess the long-term performance and potential of their algorithms, providing insights into consistent, compounded growth and a clearer understanding of its market performance.

In algorithmic trading, a higher CAGR signifies consistent and compounded growth, suggesting a robust strategy capable of delivering sustained returns. Conversely, a lower CAGR may indicate a more conservative growth approach.