Hi,
today I encountered an issue when comes to calculating the order's performance.
Assuming I would have bought stocks at 100$ and sell 105$ the gain is 5% according to foll equation (sold price - buy price)/buy price*100 = 5.00%
However, considering the following price history I would get a different result:
1. day 100$
2. day 98$
3. day 103$
4. day 106 $
5. day 107$
6. day 105$
with summing up all single percentage changes the final result is 5.0889%. So what is the actual performance after all?
5.0889%
After a hour from now if the market trades at 99.59, percentage change in the last hour would be calculated as [(99.59-100.8)/100.8] which will be - 1.2%. For the most part when somebody doesn't mention the time period the percentage change will be from the earlier day's end price. For more info you can use this best essay to having a wonderful assistant in writing works. https://www.clazwork.com
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Hi,
today I encountered an issue when comes to calculating the order's performance.
Assuming I would have bought stocks at 100$ and sell 105$ the gain is 5% according to foll equation (sold price - buy price)/buy price*100 = 5.00%
However, considering the following price history I would get a different result:
1. day 100$
2. day 98$
3. day 103$
4. day 106 $
5. day 107$
6. day 105$
with summing up all single percentage changes the final result is 5.0889%. So what is the actual performance after all?
Summing precentages of 1..2 + 2..3 +3 ..4 + 4..5 + 5..6 is not the same as percentage from 1..6 directly.
1. day 100$
2. day 50$ (-50%)
3. day 75$ (+50%)
adding precentages = 0%
but 1..3 is -25%
* it's clear that day 1..2 is -50% out of 100 starting balance and day 2..3 is +50% out of 50 starting balance
If you insist on incrementing precentages - One way is to add precentages out of day 1.
1. day 100$
2. day 50$ (-50%)
3. day 75$ (+25% - out of day 1)
Now you can add precentages - total -50%+25%=-25%
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Hi,
today I encountered an issue when comes to calculating the order's performance.
Assuming I would have bought stocks at 100$ and sell 105$ the gain is 5% according to foll equation (sold price - buy price)/buy price*100 = 5.00%
However, considering the following price history I would get a different result:
1. day 100$
2. day 98$
3. day 103$
4. day 106 $
5. day 107$
6. day 105$
with summing up all single percentage changes the final result is 5.0889%. So what is the actual performance after all?