Reverse Adjusted Chart and Positions

Author: Gamba

Creation Date: 10/14/2013 9:14 AM

Wealth Lab » Wealth-Lab Developer/Pro » Reverse Adjusted Chart and Positions

Gamba

10/14/2013 9:14 AM

I know about DataSeriesOp.SplitReverseFactor function and it works fine to calculate the adjusted prices, volume or dependent indicator-values.

But I wonder how to adjust the chart, respectively the positions. Please see attached image with a trade on ADP, whcih had a huge split on end of march 2007. The position is entered at market and closed with -80%. How to use the adjusted value for the chart and for the position (profit/loss computation?

Eugene

10/14/2013 9:23 AM

Check this out: Wealth-Lab User Guide > Charting > Chart Context Menu > Process a Stock Split ...

Gamba

10/14/2013 10:41 AM

Eugene, I know about this method, but I don't want to change stock prices for the past.
Is there another way that the managed position works on the adjustedPrice?

Or is it more accurate to close positions before a split to not get strange results during backtest.

Eugene

10/14/2013 10:57 AM

Processing a stock split is the supported and correct method of dealing with stock splits.

Gamba

10/14/2013 11:05 AM

You say that I have to process all splits of all stocks I want to trade manually?
Hm ... this does not fit in my automating test-process ... how does other users handle this issue ...

Eugene

10/14/2013 11:32 AM

QUOTE:
You say that I have to process all splits of all stocks I want to trade manually?

The Yahoo! provider automatically processes all stock splits with the Split Adjustment option enabled in the Data Manager. There can and will be exceptions, mostly related to incorrect handling of splits in the Yahoo data feed, which you correct manually as suggested above.