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The formula in the question the answer refers to has been updated + minor spelling
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Bob Jansen ♦
Bob Jansen ♦
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For a single day as long as $K(t)$$K(t+1)$ includes the intraday cashflowscash flows it is the same, however if you do not simulate your cash balance interest rate you forget that your cash get compounded over time, which is slightly incorrect.

This is why someone suggested you simulate your cashbalancecash balance. This is more correct as well if you are not always 100% invested or if you have access to leverage as you get interest or get charged for being in credit/debit.

For a single day as long as $K(t)$ includes the intraday cashflows it is the same, however if you do not simulate your cash balance interest rate you forget that your cash get compounded over time, which is slightly incorrect.

This is why someone suggested you simulate your cashbalance. This is more correct as well if you are not always 100% invested or if you have access to leverage as you get interest or get charged for being in credit/debit.

For a single day as long as $K(t+1)$ includes the intraday cash flows it is the same, however if you do not simulate your cash balance interest rate you forget that your cash get compounded over time, which is slightly incorrect.

This is why someone suggested you simulate your cash balance. This is more correct as well if you are not always 100% invested or if you have access to leverage as you get interest or get charged for being in credit/debit.

The formula in the question the answer refers to has been updated.
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edit approved Jan 14, 2014 at 6:28
Tom Tucker
edit approved Jan 14, 2014 at 6:28
Tom Tucker
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For a single day as long as $c_{close}$$K(t)$ includes the intraday cashflows it is the same, however if you do not simulate your cash balance interest rate you forget that your cash get compounded over time, which is slightly incorrect.

This is why someone suggested you simulate your cashbalance. This is more correct as well if you are not always 100% invested or if you have access to leverage as you get interest or get charged for being in credit/debit.

For a single day as long as $c_{close}$ includes the intraday cashflows it is the same, however if you do not simulate your cash balance interest rate you forget that your cash get compounded over time, which is slightly incorrect.

This is why someone suggested you simulate your cashbalance. This is more correct as well if you are not always 100% invested or if you have access to leverage as you get interest or get charged for being in credit/debit.

For a single day as long as $K(t)$ includes the intraday cashflows it is the same, however if you do not simulate your cash balance interest rate you forget that your cash get compounded over time, which is slightly incorrect.

This is why someone suggested you simulate your cashbalance. This is more correct as well if you are not always 100% invested or if you have access to leverage as you get interest or get charged for being in credit/debit.

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BlueTrin
BlueTrin
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For a single day as long as $c_{close}$ includes the intraday cashflows it is the same, however if you do not simulate your cash balance interest rate you forget that your cash get compounded over time, which is slightly incorrect.

This is why someone suggested you simulate your cashbalance. This is more correct as well if you are not always 100% invested or if you have access to leverage as you get interest or get charged for being in credit/debit.