What's the right way to take a series of returns and convert it into a continuous index? Let's say I want to show the performance of a strategy starting from 1, and adding on returns so that I get an equity curve, should I be using
cumsum(1 + returns) or
cumprod(1 + returns)?
closed as off topic by Owe Jessen, Joshua Chance, chrisaycock Mar 27 '11 at 19:30
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