hi
this is not correct, dont look at the intial capital and final capital, because in this analysis only trading of one nifty has been considered for every trade stage irrespective of capital, and this will change as soon as we change the intial capital ,if intial capital is changed to 100000 than result will be show CAR around 1.98 %. so here risk adjusted return will give true picture which is around 69 %.
this is also clear from the fact ,that this system is giving .99% average profit for every trade and total 735 trades for the jan2002 to oct 2012 data, means average 70 trades per year, and around 69 or 70% average annual return, even if compounding is not considered.