johnnydrako
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Hello,
I wish to begin backtesting a trading system manually in good ol' Excel using weekly closing data for PG. The data I have came from Yahoo and my confusion comes in regarding the Adjusted Close figure.
* To accurately test, do I need to also have the calendar of splits and dividends?
Specifics:
Let's say I'm testing for 100 shares starting at the beginning of the spreadsheet, which is January 2, 1970. On that date, the "real" weekly close was 110, but the adjusted close was 0.63.
As I see it:
1) If I use the Adjusted Close, I will also need to convert all the weekly high and low data (the two other data points required in this trading system) in order to compare apples and apples
2) If I use the "actual" close, then I *will* need to adjust the number of owned shares for splits as they happened.
Either way, it sounds more complicated than it should be. All suggestions will be appreciated.
I wish to begin backtesting a trading system manually in good ol' Excel using weekly closing data for PG. The data I have came from Yahoo and my confusion comes in regarding the Adjusted Close figure.
* To accurately test, do I need to also have the calendar of splits and dividends?
Specifics:
Let's say I'm testing for 100 shares starting at the beginning of the spreadsheet, which is January 2, 1970. On that date, the "real" weekly close was 110, but the adjusted close was 0.63.
As I see it:
1) If I use the Adjusted Close, I will also need to convert all the weekly high and low data (the two other data points required in this trading system) in order to compare apples and apples
2) If I use the "actual" close, then I *will* need to adjust the number of owned shares for splits as they happened.
Either way, it sounds more complicated than it should be. All suggestions will be appreciated.
