Asymmetric Return Compounding

Asymmetric returns leads to better compounding of capital. If gains are larger that losses, compounding is positive. When losses are as large as gains compounding is negative, even if the gain and loss are the same percentage. For example, a -20% loss requires a +25% gain to earn back the amount lost. Capital compounds best when investment returns are asymmetric.

or more information, see:

Asymmetric Payoff

Asymmetric Investing

Asymmetric Risk

Asymmetric Trading System

Asymmetric Risk / Reward

Asymmetric Return Distribution

Asymmetry Ratio

Positive Asymmetry

Absolute Return 

 

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