Methodology
Transparent examples. Visible assumptions.
The data, formulas, and conventions behind AnalyticsAlpha’s interactive learning panels.
Sample data
All dashboards on AnalyticsAlpha.com use fixed, invented observations. They are not securities prices, executed trades, account balances, recommendations, or a performance record. Interactive controls switch between pre-rendered educational views; they do not request a live feed or change a connected account.
The homepage snapshot and one-year portfolio example share a path with 13 observations, covering 12 monthly intervals. The three-year example has 13 observations spanning 12 quarterly intervals. Each path starts at an index value of 100. The two horizons are independent examples, not overlapping segments of one portfolio.
Return and benchmark excess
Cumulative return is ending index divided by starting index, minus one. The one-year portfolio example ends at 108.4, giving 8.4%; its benchmark ends at 106.1, giving 6.1%. The difference is 2.3 percentage points. It is simple benchmark excess return, not a model-based alpha estimate.
The three-year example ends at 122.6 versus a benchmark of 118.2. Its cumulative returns are 22.6% and 18.2%, respectively, a difference of 4.4 percentage points. These returns are not annualized. The paths contain no external cash flows or separately modeled fees or taxes.
Observed drawdown
For each point, calculate current value divided by the greatest preceding or current value, minus one. The most negative result is the maximum drawdown observed within that path. The number is displayed as a negative percentage.
Only the provided observations are measured. A monthly or quarterly path does not reveal the lowest value between observations. The example does not invent a daily series, volatility estimate, or time-to-recovery calculation that its data cannot support.
Chart lab formulas
The chart lab contains 20 sample closing prices and 20 separate volume values. Volume is expressed in thousands of sample shares. The five-session simple moving average is the arithmetic mean of the latest five closes and begins at session five.
Five-session momentum is (current close divided by the close five sessions earlier, minus one) multiplied by 100. It begins at session six. The initial missing values represent insufficient history, not zero. This indicator is rate of change, not RSI. Use the chart CSV to reproduce both transformations.
Website funnel conventions
The invented funnel counts 1,000 eligible sessions, then subsets of 400, 120, and 36 at successive stages. Each stage belongs to the same cohort and uses a consistent counting rule. The overall completion rate is 36 divided by 1,000, or 3.6%. The final-stage completion rate is 36 divided by 120, or 30%.
The bars encode the count relative to the original 1,000 sessions. The example does not collect events or connect to a website analytics account. Real reporting requires a documented event definition, counting unit, time window, and validation process.
Reproduce the examples
Download the portfolio sample data for the two invented index paths or the chart sample data for prices, volume, and indicators. Numbers are rounded for presentation; calculations use the listed inputs.
The journal template is a blank local starter. The journal example contains two fictional completed long-only positions with explicit fees and net outcomes. No file represents a financial account.
Sources and editorial scope
The long-form articles link to primary educational or technical sources supporting their subject. Worked examples and research checklists are original explanatory material. Source links do not imply endorsement or partnership.
Examples intentionally avoid current market quotes, broker-specific eligibility rules, or predictions. Read the article-specific source alongside the local explanation when you need the underlying definition or technical context. Send corrections through Contact.