tkthustler
New Member
- Joined
- Jan 29, 2015
- Messages
- 8
Probably not as complicated as it sounds but I need some help for those that have a minute.
I have a list of stock returns broken down by weeks and I'd like to get a historical trading profit or loss per month (in %) utilizing a basic trading strategy.
The trading strategy involves trading in the direction of the current weeks price move in hopes to catch the trend of the following week. In trading we can bet against a stock so I can make money on the downside (to "short) and of course to buy the stock (go "long") you would make money if the price goes up. If week 1 is long (cumulative 5 day total from Monday to current price Friday before the market close) I will be long going in to week 2. If week 2 is long I will be long going into week 3. If week 3 was down, I will be short going into week 4. The goal is to get hypothetical P&L (in terms of percentage gain/loss) for each month.
Example for clarification.
Prior month final week -1%
week 1 2%
week 2 3%
week 3 -1%
week 4 2%
Since the final week in the prior month was a negative return, I would "short" the stock or bet against for the upcoming week. Since week 1 was up 2% I would be down -2% at the end of week 1. At the end of week 1 I would also flip the position long since the week ended up positive . Week 2 is up 3% on the week so I would be up 1% total on the month. My position would stay long. Week 3 would be a loss, causing me to be flat month to date and to flip my position to "short". Week 4 would be positive, thus meaning another loss and would mean a -2% total monthly loss and a position flip from short to long heading into week 1 of the next month.
So assuming I have all the weekly return data, what formula can I utilize each month to obtain a weekly profit or loss using this strategy?
Thanks in advance for any help.
I have a list of stock returns broken down by weeks and I'd like to get a historical trading profit or loss per month (in %) utilizing a basic trading strategy.
The trading strategy involves trading in the direction of the current weeks price move in hopes to catch the trend of the following week. In trading we can bet against a stock so I can make money on the downside (to "short) and of course to buy the stock (go "long") you would make money if the price goes up. If week 1 is long (cumulative 5 day total from Monday to current price Friday before the market close) I will be long going in to week 2. If week 2 is long I will be long going into week 3. If week 3 was down, I will be short going into week 4. The goal is to get hypothetical P&L (in terms of percentage gain/loss) for each month.
Example for clarification.
Prior month final week -1%
week 1 2%
week 2 3%
week 3 -1%
week 4 2%
Since the final week in the prior month was a negative return, I would "short" the stock or bet against for the upcoming week. Since week 1 was up 2% I would be down -2% at the end of week 1. At the end of week 1 I would also flip the position long since the week ended up positive . Week 2 is up 3% on the week so I would be up 1% total on the month. My position would stay long. Week 3 would be a loss, causing me to be flat month to date and to flip my position to "short". Week 4 would be positive, thus meaning another loss and would mean a -2% total monthly loss and a position flip from short to long heading into week 1 of the next month.
So assuming I have all the weekly return data, what formula can I utilize each month to obtain a weekly profit or loss using this strategy?
Thanks in advance for any help.