Execution-Based Finance (EBF): ROR Return on Return
We end the day with our tally of Return on Return (ROR) is a performance metric that measures the total realized gain generated from repeatedly deploying the same unit of capital over multiple cycles within a given period.
Unlike traditional return on investment (ROI), which measures gain relative to capital held, ROR captures the velocity, frequency, and efficiency with which capital is cycled through high-probability trades, emphasizing capital throughput over capital accumulation.
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Formula variables:
• G = Realized gain per cycle
• C = Capital deployed per cycle
• n = Number of completed gain cycles
• T = Time period (days, weeks, months)
For the final trade of the day, we executed Price Magnetism, anchoring the Low of Day while magnetizing price action into a higher close.
