Need advice on how to proceed

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Old Aug 5, 2016, 6:31pm   #9
Joined Feb 2002
By all means come back with a bit more if it helps makes sense of the picture.
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Old Aug 5, 2016, 6:38pm   #10
 
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Joined Jul 2016
du$t started this thread @tomorton: it is relatively simple to simulate the effect of drag from transaction costs and things like slippage from trading larger amounts (I touched upon this in my original post).

I have tested the opening and closing codes in depth using actual cash. The main reason I do not want to trade with a smaller amount- say 5k USD- is that the account's value will erode quickly due to transaction costs eating profits. The caveat is that I could still make arguments about alpha that would have been generated had a larger amount been traded, but I think for demonstrative purposes, it is much better to be able to make a statement like (I generated 20% on 100K after 6 months, for example). I have managed to scrap together 75k USD, which will be enough to smother out the effect of trading drag and demonstrate returns. Thanks again for all of your help.
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Old Aug 5, 2016, 7:02pm   #11
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Understood. Cheers.
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