There is sometimes a bit of contention around return on capital (ROC). This is because, without context, it's difficult to compare apples to apples. On its own, the number says nothing about odds of success, number of occurrences, or which factors might affect sustainability or repeatability. It can also be calculated using different numbers such as total vs. capital allocation, it might exclude fees, or it might be skewed by outliers... One giant winner could make a failing strategy look like a total success.
With that in mind, I'm doing my ROC calculation right here so you can see exactly how I derived it. My biggest pitfall is that I had to estimate my average capital allocation. To the best of my recollection, my capital allocation typically ranged between $0 and $6000 extremes. I estimate my average allocation, however, to be around $3500. Unfortunately, it is not tracked on the platform, so I am giving my best approximation. Please keep that in mind.
Avg Cap Allocation: ~$3500
Final P/L:
~$758 Profit
Total Commissions & Fees:
~$195
P/L less Fees:
~$563 Profit
Realized Return on Capital (After Fees): $563 Profit ÷ $3500 Allocation × 100% ≈
16% ROC
Despite the struggles, I made some good progress this year. Looking back, the majority of my profits were made during the brief spikes we had in volatility. Next year, as long as the market doesn't rise an astounding 30% and has a little I think I can crush this year's performance. Still, it's encouraging to know that, even in a relentlessly unaccommodating environment, I could still turn a profit.