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The obvious question at this point is "What is the trading
industry norm?".
d
Yes, you are right and this is exactly the difference between
_portfolio_ profit and
_trade_ profit in AmiBroker.
_Portfolio_ %
profit uses EQUITY (so it is subject to leverage) as base of
calculations.
_Trade_ % profit uses entry value (#shares * price) as base
of calculations.
Best regards,
Tomasz
Janeczko
amibroker.com
----- Original Message -----
From: "Fred"
<ftonetti@xxxxxxxxxxxxx>
To:
<amibroker@xxxxxxxxxxxxxxx>
Sent: Wednesday, August 31, 2005 5:52
PM
Subject: [amibroker] Re: AmiBroker Support
> The
definition of Equity is correct but the example was badly
> worded ...
>
> What I should have said was ... There is no additional
EQUITY by
> utilizing additional buying power but investing the same
dollar
> amount because although assets increase, liabilities do as
well i.e.
> whether leverage is 1x or 100x, EQUITY is the same until
market
> value changes. When market value changes EQUITY will be
impacted
> 100x as much with leverage of 100x whether that be up or
down.
>
> --- In amibroker@xxxxxxxxxxxxxxx, "Fred"
<ftonetti@xxxx> wrote:
>> 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
>>
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>> >
>> >
>>
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>> >
>> > a.. Visit
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>>
>
>>
> b.. To unsubscribe from this group, send an
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>> >
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>>
>
>>
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>> of Service.
>> >
>> >
>> >
-----------------------------------------------------------------
>
---
>> ----------
>
>
>
>
>
> 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
>
>
>
>
>
>
>
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
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