Vivek Gautam, XIRR would be the best indicator of portfolio performance. XIRR takes into account the timing of your trades also and annualizes the return automatically.More recent trades would have less impact on the XIRR number.
Your buy and sell trades will be a series of positive and negative cashflows respectively. At the end of the period (say, year, month, quarter etc.), you would assume that you sell the entire portfolio (negative entry) at the then market price. On the next day you assume that you buy it back at the same price (positive entry) so that you are ready to calculate the XIRR for the subsequent period.
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