|
PureBytes Links
Trading Reference Links
|
I'd agree that buying power is twice, but NOT equity. Equity is
defined as the difference between the market value of a property and
the claims held against it. If this were not true then I could have
enjoyed having 10x the equity at the time of my last home purchase by
buying a home for 10x as much and taking out a mortgage that was 10x
as much.
--- In amibroker@xxxxxxxxxxxxxxx, "Tomasz Janeczko" <amibroker@xxxx>
wrote:
> [amibroker] Re: Script and Stockconsultant websiteHello,
>
> Just a few posts ago I think I expressed clearly what is needed
when contacting support:
> http://finance.groups.yahoo.com/group/amibroker/message/86456
>
> Sending screenshot alone means nothing to me.
>
> Since you do NOT provide all necessary details (formula, settings)
that are needed to analyse
> the case you are giving me NO CHANCE to know what you have done to
obtain results.
>
> _ASSUMING_ that this is the same case as Bert reported earlier
(comparing results obtained
> with ^RUT with 50% margin with results obtained with UAPIX without
margin,
> I can say that numbers ARE correct.
>
> I can copy-paste response which I sent to him with exact
calculations explaining why:
>
> === MY RESPONSE TO BERT COPY PASTE SECTION 1 ===
> In this example
> we assume the following: that UAPIX movements are exactly 2x the
movement of ^RUT
> (so there is exact 2x leverage between them). (Note that this
assumption may not be true in
> reality and is used for illustration purposes only)
>
> say UAPIX moves from 23.77 to 24.77 (+4.2%) and your initial equity
is
> 23770 so you purchase 1000 shares. Your profit is $1000 and percent
profit is +4.2%
>
> At the same time ^RUT moves 2.1% from 638.67 to 652.10.
> Now your cash amount is the same as in previous case 23770 but you
are on
> 50% margin so your buying power is twice as much 2*23770 = 47540.
> So you can purchase 74.4359 shares (for simplicity
> in the example we assume that fractional purchases are possible)
> Your dollar profit is (652.10-638.67) * 74.4359 = $1000 (approx due
to rounding) - the same
> as in first case.
>
> Your PERCENT profit is however:
> $1000 / $47540 = 2.1%
>
> This is so because in second case you had to buy shares for $47540
> while in first case you only spent $23770.
>
>
> If you want expectancy to be the same in both cases you should not
use
> percent profits but dollar profits instead.
>
>
> === MY RESPONSE TO BERT COPY PASTE SECTION 2 ===
>
>
> When you use leveraged instrument BOTH % profit and dollar profit
are twice
> because PERCENT is based on SMALLER EQUITY VALUE.
>
> ( 2 * DOLLAR GAIN ) / EQUITY = TWICE normal % profit
>
> If you use magin account PERCENT PROFIT is calculated from HIGHER
EQUITY VALUE.
> When use 50% margin account your EQUITY is TWICE your cash.
> So even if DOLLAR GAIN is twice, PERCENT GAIN is the SAME because
equity (buying power)
> is TWICE.
>
> ( 2 * DOLLAR GAIN ) / ( 2 * EQUITY ) = DOLLAR GAIN / EQUITY =
normal % profit
>
> This is so because on margin account you actually purchase TWICE
the original amount
> and your dollar profit is also twice as much. But those 2/2 reduce
and % profit remains the same.
>
> If you are using leveraged instrument, things are quite different:
> you invest only HALF the amount you would invest on margin account,
yet dollar profits are the same.
> Hence percent profit is double.
>
> =====
>
> Best regards,
> Tomasz Janeczko
> amibroker.com
> ----- Original Message -----
> From: Fred Tonetti
> To: amibroker@xxxxxxxxxxxxxxx
> Sent: Wednesday, August 31, 2005 1:58 AM
> Subject: [amibroker] Re: AmiBroker Support
>
>
> Looks like the attachment didn't make it in the previous post .
>
>
>
> = = = = = = = = = = = =
>
>
>
> TJ,
>
>
>
> Really ? Maybe we don't understand the statistics . See the
attachment. Same system on both sides traded without margin on the
left, with margin on the right.
>
>
>
> Should:
>
>
>
> - Avg Profit/Loss% in ALL TRADES Section
>
> - Avg Profit % in WINNERS Section
>
> - Max Trade% Drawdown
>
>
>
> be the same ?
>
>
>
> If so can you please explain ?
>
>
>
> Thanks, Fred
>
>
>
> = = = = = = = = = = =
>
>
>
> Follow up: I have made a check to verify your report about avg.
profit/loss
> and all I can say is that I can not confirm your observations.
>
> Best regards,
> Tomasz Janeczko
> amibroker.com
>
>
> ----- Original Message -----
> From: "Tomasz Janeczko" <amibroker@>
> To: <amibroker@xxxxxxxxxxxxxxx>
> Sent: Tuesday, August 30, 2005 5:51 PM
> Subject: Re: [amibroker] Is AmiBroker Support on Vacation, "rude"
or what??
>
>
> > Hello,
> >
> > I have forwarded your message to Marcin for checking in detail.
> > One thing is sure that we do not "selectively decide" what
issues to respond
> to.
> >
> > I have quickly checked the issue you mentioned and you don't
ask any question
> in it.
> >
> > All I can see are some thoghts/observations.
> >
> > Best regards,
> > Tomasz Janeczko
> > amibroker.com
> > ----- Original Message -----
> > From: "bistrader" <bistrader@>
> > To: <amibroker@xxxxxxxxxxxxxxx>
> > Sent: Tuesday, August 30, 2005 4:35 PM
> > Subject: [amibroker] Is AmiBroker Support on Vacation, "rude"
or what??
> >
> >
> >>I find it disturbing that AmiBroker Support selectively decides
what
> >> issues it wants to respond to. I have talked to several in our
> >> FastTrack group that send emails to AmiBroker Support and even
Tomasz
> >> asking for help. Oh sure, they get the standard message saying
that
> >> a response will be provided within 24 hours but they never
hear a
> >> thing on what they consider to be critical items. One might
ask, why
> >> is AmiBroker Support and even Tomasz being so selective in
what they
> >> repond to? I, for one, have no idea.
> >>
> >> I certainly hope that this does not continue. I really like the
> >> software and the response by AmiBroker prior to these string
of cases
> >> has been quite good.
> >>
> >> In any case, I hope it changes. I saw a message recently where
> >> someone on this board implied that someone else was being
rude. Is
> >> it "rude" when one tells you that a response will be provided
and
> >> none ever is? Is it "rude" when someone does not respond even
when
> >> repeated requests are made. I hope not. I would rather think
that
> >> he/she just got caught up in the moment. An oversight, if you
will.
> >>
> >> So, if interested, think about responding to request 22642
originally
> >> sent to AmiBroker on September 12th and then again on September
> >> 18th. Try to be nice as we should all practice what we preach.
>
>
>
>
>
>
>
>
>
>
>
> --------------------------------------------------------------------
----------
>
> I am using the free version of SPAMfighter for private users.
> It has removed 6178 spam emails to date.
> Paying users do not have this message in their emails.
> Try SPAMfighter for free now!
>
>
>
> --------------------------------------------------------------------
----------
> I am using the free version of SPAMfighter for private users.
> It has removed 6178 spam emails to date.
> Paying users do not have this message in their emails.
> Try SPAMfighter for free now!
>
>
> Please note that this group is for discussion between users only.
>
> To get support from AmiBroker please send an e-mail directly to
> SUPPORT {at} amibroker.com
>
> For other support material please check also:
> http://www.amibroker.com/support.html
>
>
>
>
>
> SPONSORED LINKS Investment management software Real estate
investment software Investment property software
> Software support Real estate investment analysis software
Investment software
>
>
> --------------------------------------------------------------------
----------
> YAHOO! GROUPS LINKS
>
> a.. Visit your group "amibroker" on the web.
>
> b.. To unsubscribe from this group, send an email to:
> amibroker-unsubscribe@xxxxxxxxxxxxxxx
>
> c.. Your use of Yahoo! Groups is subject to the Yahoo! Terms
of Service.
>
>
> --------------------------------------------------------------------
----------
------------------------ Yahoo! Groups Sponsor --------------------~-->
Put more honey in your pocket. (money matters made easy).
http://us.click.yahoo.com/r7D80C/dlQLAA/cosFAA/GHeqlB/TM
--------------------------------------------------------------------~->
Please note that this group is for discussion between users only.
To get support from AmiBroker please send an e-mail directly to
SUPPORT {at} amibroker.com
For other support material please check also:
http://www.amibroker.com/support.html
Yahoo! Groups Links
<*> To visit your group on the web, go to:
http://groups.yahoo.com/group/amibroker/
<*> To unsubscribe from this group, send an email to:
amibroker-unsubscribe@xxxxxxxxxxxxxxx
<*> Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/info/terms/
|