Prop Account Returns: A Zero Mean Can Hide a Loss and a Boundary Crossing
A return average and an account path measure different things. A sequence with a zero arithmetic mean can finish below its starting value. A later recovery also cannot erase an earlier boundary crossing in a path-based evaluation.
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Specify the compounding base
For a fictional account starting at 10,000, apply a 10% decline to current value and then a 10% increase to the reduced value. The path is 10,000 → 9,000 → 9,900. The arithmetic mean of the two percentages is zero, while total compounded change is minus 1%.
The geometric per-observation mean is sqrt(0.9 × 1.1) − 1, approximately minus 0.5013%. It is not an annual rate without the elapsed period and a defined annualisation convention. The existing resource on this site examines that distinction.
Inspect the intermediate boundary
If a separate teaching rule supplies a floor of 9,400, the first observation at 9,000 is below it. The later 9,900 does not turn the earlier path into one that stayed above the floor. This is a supplied mathematical boundary, not a reproduction of an actual platform decision.
An actual account can be assessed at other instants or by additional conditions. Missing intraday observations cannot be filled with an assumed smooth curve. Costs and open positions would also need inclusion in a complete account reconstruction.
| Observation | Account value | Meaning |
|---|---|---|
| Initial | 10,000 | Starting teaching value |
| After −10% | 9,000 | Below supplied 9,400 floor |
| After subsequent +10% | 9,900 | Total change −1% |
| Two-return arithmetic mean | 0% | Not the compounded result |
Compare to the actual programme definition
HashHedge publishes product-specific evaluation conditions and an equity-based daily calculation. Do not normalise every rule into an ending-period percentage. Retain the purchased product, exact rule version and observed account state.
The optional sponsored link offers current HashHedge information. This article is a worked arithmetic audit rather than a return forecast or recovery plan. It opens no account and makes no claim that a final positive balance would establish compliance.
Sources and rule dates
- HashHedge: daily loss calculation
Checked 2026-10-23. Selected published description only. Worked numbers and event records are fictional; no actual provider account, search result, live price, eligibility or payment is established. - HashHedge: challenge types
Checked 2026-10-23. Selected published description only. Worked numbers and event records are fictional; no actual provider account, search result, live price, eligibility or payment is established. - HashHedge: terms and conditions
Checked 2026-10-23. Selected published description only. Worked numbers and event records are fictional; no actual provider account, search result, live price, eligibility or payment is established.