Understand How Wiseinvest Calculates APY

Understand How Wiseinvest Calculates APY

Our AI trades compounded at each order earned an interest that, about the principal, resulted in an Annual Percentage Yield (APY) of 42% approximately (2011 – 2020). It was done by following the formula (decimal format) from the FDIC Law and Regulations (Appendix A to part 230 – Annual Percentage Yield calculation, under 6500 – Consumer Protection)*:

how to calculate apy

“Principal” is the number of funds assumed to have at the beginning of the period.
Interest” is the total dollar amount of interest earned on the Principal for the period.
“Days in Term” is the number of days in term of the account.

Which is analogous to:

APY formula

“Days in Term” is the number of days between the first and the last signal.

Also as defined by FDIC § 1030.2 (o)** Interest rate means the annual rate of interest which does not reflect compounding and may be referred to as the annual percentage rate (APR). We then defined APR as:

how to calculate return APY

It is possible to compound periodically but not within the period, resulting in a period compound APY(PCAPY) which is the generalized formula of (II).

formula to calculate APY

We could also write:

apy forex trading

To find the value of the “average” interest rate by a period that is defined by the previous formula.

how to calculate interest rate

In order to gain interest over interest, it is advisable to compound with the minimum possible period length.

In fact, our yearly compounded APY is 14.36% over 13 years and our signal compounded APY is 38.52%.

This is why it is highly advisable to update the current amount available to invest in our dashboard so we can compound in the most continuous possible manner, it is not only a matter of increasing profit but mainly to control risk exposure.

For instance, to simulate the results of a person that uses our signals for 20 years and monthly deposits 100 USD, we could compound at each order to maximize the interest over interest or in a more user friendly, updating the amount available, and thus compounding, monthly(MCAPY).

Annual percentage yield APY forex


  • Given an annual interest rate, we may find the monthly interest rate simply by dividing by 12. The converse is also true when there is no compounding involved.
  • The PCAPY returns the APY when the period is one signal and the PCAPY returns the APR when the days in term and the period is one year.

how to calculate returns on forex

By only knowing the APY we can compute (VIII) but not (VII). To compute (VII) we need the information of the not compounding interest over each period. in fact, in the simulation of 20 years we have:

Case 1 (Using signal compounding APY):

APY best formula

Case 2 (Using the MCAPY):

APY full formula

If a person saves 100 USD at the end of each month and invest with the wise signals over 20 years, he will have 2,459,966.26 USD in case one and 1,566,565.91 in case 2.

The best way to trade forex

There are two ways to invest with our AI in forex:

1. Automated with AI-Trading. Check out the 3 steps to trade automated with our AI.

automated trading with ai bot

By trading forex automated with AI, you will save time and improve your performance without monitoring the market and managing trading platforms.

With Automated AI trading you do not need MT4 / MT5 and other trading platforms to invest in forex. All forex trades are automatically placed into your broker account every time that our AI system identifies a new worthy trading opportunity. You can monitor the AI trading performance in real-time directly on our dashboard.

Automated AI trading benefits

  • Setup in 3 minutes.
  • Totally hands-off, from anywhere.
  • Invest from just $100.
  • APY of 40% over the past 13 years*.
  • Lightning-fast execution & no slippage.
  • No commissions, no management fees.
  • Portfolio with 40 different automatic strategies.
  • No MT4/MT5 or other platforms required.
  • Test with a risk-free practice account.
  • Trading results directly on our dashboard.

Don’t you have a broker account yet? Our AI is integrated to trade automated with the broker FXCM. Click here to open an account.

2. Manually with AI forex signals.

Wiseinvest also provides AI forex signals that perfectly fit into MT4, MT5, and any trading platform. To trade with our AI forex signals, you must simply copy the data you receive from each real-time signal into any forex brokerage account of your choice.

There are five unique variables for each AI signal, and each must be copied exactly, to match the performance of the signal as close as possible.

Each AI forex signal alert consists of the following five data points:

  • Symbol (forex pair)
  • Direction (long or short)
  • Position size (number of units or lots)
  • Take profit (price level to exit with maximum gain)
  • Stop loss (price level to exit with maximum loss)

Check out how to trade with our AI forex signals.

  1. Subscribe to a Wise-Plan.
  2. Open a Brokerage account. Check this article about the best forex Brokers.
  3. Set an amount and a position size on our Wiseinvest dashboard.
  4. Our AI will send you real-time trading alerts by email and Telegram.
  5. Copy the signals and paste them into your Brokerage account.

All forex signals are sent every time that our AI trading system identifies a new trading opportunity. Our trading strategies are developed on a variety of time frames such as 4 and 8 hours.

Wiseinvest AI forex signals are Market Orders and you do not need the entry price. You can copy each signal while it is available on our dashboard. We do this way to assure that traders will just place signals while they are good to be traded.

You can trade forex with our free forex signals clicking here, or with our Premium subscription that provides you unlimited AI signals and automated AI trading in partner brokers. Whether you are a beginner or a professional forex trader, our AI trading system can help you save time and improve your trading performance. Get started with free AI.

When investing through Wiseinvest automated AI trading or AI forex signals, you do not need to calculate pips and change the leverage in your forex broker account. Learn more about leverage in forex trading by clicking here.

What is the AI performance in forex trading?

The Win Rate of our AI moves as shown by the period and can reach up to 95%. The introduction relies upon the capable wild estimation metric, which infers that our model is valuable at whatever point the Win Rate is more noticeable than 60%. All methods of our AI trading system search for stable returns and sufficient results to achieve an ordinary return of 40% consistently (APY), without the usage of high impacts.

We appreciate that what is significant in forex trading is the definitive result. Thusly, the money related master needs to consider that Win Rate isn’t commonly the best estimation to measure execution in forex, as other signal providers uncover. For instance, out of 100 trades, solitary 1 trade may be an adequate disaster to make the 99 trades not gainful. For this circumstance, the Win Rate would be 99%, yet the convincing result would be unfeasible (negative).

We revolve around the appearance of 40% of APY and not just on Win Rate.

It is essential to see that forex brokers may charge spreads, commissions, and overnight costs in your trading account, and these components can impact the AI execution. You can check our forex trading history to see more about AI trading execution by clicking here.

How much do I need to trade forex with AI?

You can start in forex trading with free AI forex signals or AI trading record and make a store from just $100 in the broker. It is moreover possible to test using a danger-free practice account with our AI trading structure. Regardless, to do a capable peril, the board in authentic records, we suggest you start from at least $100. Notice that some forex traders require assorted beginning stores to trade forex.

What is the trading strategy of our AI?

Our AI methodology is the blend of different AI trading structures, with more than 100 features, that portray 40 proprietary strategies which simultaneously consider: Quotes of the 28 forex symbols, Supports, and Resistances in different time-frames, Trends and Counter-designs, Cross-markers, Index of each pair, Economic Calendar, Investors Sentiment.

Our AI looks at those fundamental, technical, and sentiment factors that impact forex trading, and all models are surveyed constantly using different burdens. In the wake of completing the examination, the choice of the signal transmission procedure is made considering the improved likelihood of flashing advantage and the total open for theory.

Using technical analysis, our count considers not simply the instances of various examples, including sponsorship and deterrent levels and cross-pointers, yet our AI is moreover prepared to make its own progressing record for each cash pair, that is used to recognize what is the best course and target.

Practically identical to fundamental analysis in forex, the AI makes an association inside the budgetary calendar to find news data that can impact express money sets.

Disclaimer: Forex and Contracts for Difference (CFDs) are complex instruments and come with a high risk of losing money due to leverage. Forex trading is not suitable for everyone. You should consider whether you understand how forex and CFDs work and whether you can afford to take the high risk of losing your money.

The forex brokerages displayed shall disclaim the overall performance of traders in their platforms. Oanda warns that 76.8% of retail forex traders lose money trading CFDs. XTB warns that 80% of retail forex traders lose money trading CFDs. FXCM warns that 74.74% of retail forex traders lose money trading CFDs.

The performances aforementioned are not related to Wiseinvest AI forex trading and AI forex signals system. You can check the performance of our AI forex system on our dashboard.


* https://www.fdic.gov/regulations/laws/rules/6500-3270.html#6500appendixatopart230