GHPR is the geometric average return per positionPositionA single entry held on the broker account, with a direction, a size, and a current floating result.Click the word to learn more. Treat each position return as a multiplier (a 2 percent gain is 1.02, a 1 percent lossLossThe realized loss on a closed position, or the sum of every losing position across a period.Click the word to learn more is 0.99), multiply them all together, take the nth root where n is the position count, subtract 1.
The arithmetic average lies when results vary. Gain 50 percent then lose 50 percent and the arithmetic average says zero. The reality is a 25 percent loss. GHPR catches this. It is the per-position return that, if held constant over the same number of positions, would have produced the same final equityEquityThe live value of your broker account, including the floating profit or loss of open positions.Click the word to learn more. That makes it the honest figure when you are projecting compounded growth over a long sequence.
A GHPR of 0.5 percent per position does not sound like much. Compounded over hundreds of positions, it becomes a real number. But the metric on its own says nothing about the variance of individual results. A 0.5 percent GHPR can come from a strategy that wins 60 percent of the time with small swings, or from one that wins 20 percent of the time with violent ones. Same average. Two very different rides.
Javlot reports GHPR alongside position count and the rest of the variance picture: drawdownDrawdownThe drop in account equity from a peak to the trough that follows, expressed as a percent of the peak.Click the word to learn more, Sharpe, Sortino. The headline averages, plus the shape of the volatility around them.