Turnover Calculation

If you wish to utilize the Trades per Month number to calculate an average turnover, simply divide the monthly number by two (because it includes buys and sells) and divide the number by the total number of securities the model selects.

Example:

  • Trades per month = 4.91

  • Divide by two to determine postion changes (because the Total Trades per Month includes Buys and Sells) = 1.5

  • Since this is a quarterly model, multiply by 3 (for three months in a quarter) = 4.5 position changes

  • Turnover = Position changes divided by Total Selections (which is ten for this example) or 45% each quarter.

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