Skip to content
New issue

Have a question about this project? Sign up for a free GitHub account to open an issue and contact its maintainers and the community.

By clicking “Sign up for GitHub”, you agree to our terms of service and privacy statement. We’ll occasionally send you account related emails.

Already on GitHub? Sign in to your account

Return of Bollinger Bands based Signals not accurate #1

Open
AnAnalogGuy opened this issue Sep 11, 2024 · 0 comments
Open

Return of Bollinger Bands based Signals not accurate #1

AnAnalogGuy opened this issue Sep 11, 2024 · 0 comments

Comments

@AnAnalogGuy
Copy link

Setting money = 0 after each buy, altough there is money left as you do not buy fractions, makes you lose money in your profit calculation and has a severe impact on the return. Actually, with every buy transaction you make, you lose (money - (number of shares * price)), which, when i.e. Tesla noted around 350 would be an amount between 0 and 350, so in average 175 per transaction. Executing 19 trades as in your example leads to direct losses of 19 * 175 = 3325 on average. In your example, that's about 20% of your profit. In realtiy it would be even more as this money could be invested and would earn a return aswell.

if money > 0:

That said: Without any correction, just runnig your example 5 years after you published it with Tesla having made two Splits in the meantime (5x, 3x) and the adjusted stock price in 2018 now being around 22 Dollars (was 350 -> 350 / 3 / 5), the result is:

Number of Trades: 19
Time Frame: 316 days
Profit: $17849.19 | 118.99%

This is about 15% higher than in your example, just for the fact that now the amount lost with each buy isn't between 0 and 350 but between 0 and 25.

Sign up for free to join this conversation on GitHub. Already have an account? Sign in to comment
Labels
None yet
Projects
None yet
Development

No branches or pull requests

1 participant