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Chuck,
It depends how you adjust for dividends. If you just subtract
the value of dividend from past quotes - then yes, you would end up with
negative prices.
But not every data vendor adjust that way. Some adjust the
price by multiplying past prices by factor
(1-dividendvaluepershare)/close;
and in that case historical prices would not become
negative.
Best regards,Tomasz Janeczkoamibroker.com
<BLOCKQUOTE
>
----- Original Message -----
<DIV
>From:
<A title=chuck_rademacher@xxxxxxxxxx
href="">Chuck Rademacher
To: <A title=amibroker@xxxxxxxxxxxxxxx
href="">amibroker@xxxxxxxxxxxxxxx
Sent: Wednesday, October 22, 2003 11:34
AM
Subject: RE: [amibroker] Dividend
Question
<FONT face=Arial color=#0000ff
size=2>"Correct" is in the eyes of the beholder. IMO, we should
use data that has been backadjusted for splits AND dividends. The
problem with backadjusting for dividends is that the resultant historical
prices can go negative and cause problems for some trading
systems. To ignore dividends can surely cause some serious
(false) breakouts and outlier profits/losses.
<FONT face=Arial color=#0000ff
size=2>
The
largest problem for futures traders is rollovers. IMO, dividends
for stock traders is of the same magnitude.
<BLOCKQUOTE
>
<FONT face="Times New Roman"
size=2>-----Original Message-----From: Steve Almond
[mailto:steve2@xxxxxxxxxxxxxxxxxxxx]Sent: Wednesday, October 22,
2003 4:56 AMTo: AmiSubject: [amibroker] Dividend
Question
I've seen discussion about dividends on this board from
time to time. Never took much notice, because dividends seemed so
insignificant. Today one of my systems threw up IOM, and I learned
different.
On 10/2/2003 IOM paid a dividend of $5. <FONT
size=2>Attached are two charts which (I think) show the effect of accounting
for this dividend or ignoring it.
Obviously, differences of this magnitude have an extreme
effect on many TA systems.
Which chart is 'correct'?
SteveSend BUG REPORTS to
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