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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.
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.
The text was updated successfully, but these errors were encountered:
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.
Capstone-Project/functions.py
Line 115 in e861467
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.
The text was updated successfully, but these errors were encountered: