CAGR
Compound annual growth rate: the smoothed yearly return over a period.
CAGR answers one question: if growth had been perfectly steady, what yearly rate would have produced this end result? A portfolio going from $10,000 to $20,000 in five years has a CAGR of about 14.9%, even though no single year returned exactly that.
CAGR compounds, so small differences matter enormously over time. 25% CAGR doubles money roughly every three years; 10% takes about seven. But CAGR alone hides the path: a 25% CAGR with a 40% drawdown is a very different investment from the same CAGR with a 15% drawdown.
Read CAGR together with maximum drawdown and the length of the record. A high CAGR over six months of live trading is noise; over a decade it is evidence.
How this platform applies it: read the methodology.