Hi,
When backtesting automated strategies using historical equity data, is it better to adjust for stock splits and/or dividends? From one perspective I think prices should be adjusted since prices will reflect adjustment history. On the other hand prices wont reflect how much investment would/could be made into a certain company at a particular point in time. So I'm a bit confused
I'd appreciate people's thoughts on this...
Regards,
Imran
When backtesting automated strategies using historical equity data, is it better to adjust for stock splits and/or dividends? From one perspective I think prices should be adjusted since prices will reflect adjustment history. On the other hand prices wont reflect how much investment would/could be made into a certain company at a particular point in time. So I'm a bit confused
I'd appreciate people's thoughts on this...
Regards,
Imran
