Firewire Knowledge Base

We break down how your portfolio metrics are calculated — with formulas, examples and no “black boxes”. Verifiable numbers start with a clear methodology.

Start with the return methodology or take a look at the glossary

Calculation methodology

Precise return and risk metric formulas that Firewire computes from your trades.

Return

XIRR — money-weighted return

Internal rate of return for irregular deposits and withdrawals. Accounts for the timing and volume of your money.

Return

TWR — time-weighted return

Pure strategy performance without the influence of capital inflows and outflows. For comparison against benchmarks.

Inflation

Real return (Fisher equation)

How much purchasing power the portfolio actually earned after deducting inflation (Russian CPI).

Bonds

YTM — yield to maturity from the trade price

The effective yield of a bond, calculated from your actual purchase price, accounting for accrued interest, taxes and commissions.

Bonds

Duration and interest rate risk

Macaulay duration and modified duration: how to assess the sensitivity of a bond's price to the interest rate.

Reference

Investor glossary

Short and precise definitions: XIRR, TWR, YTM, accrued interest, duration, MCFTR, CPI, FIRE and other terms.

Where to start

Frequently asked questions and the next step.

Comparison