Hi Someone,
One of you commented, in a reply (which I can not find now) to a post of mine, that for backtesting with the AIM spreadsheet with Vealies that I should use "adjusted close" rather than "close" but I've run into one that seems quite screwy, SCIF.
It only started in 2010 at 18.97 close and 74.92 adjusted close. As of 9/2 (monthly) it is 48.86 for both. There was a 1:4 stock split in June of 2013.
The results of a back test for each version is quite different. For closing price with 50% cash, 20 shares minimum sale, $500 minimum amount, 10% sell safe, 25% buy safe (to avoid negative cash) there is a profit of 164% over the four years. But with adjusted closing price with 50% cash, 5 shares minimum sale, $1200 minimum amount, 10% sell safe, 35% buy safe (to avoid negative cash) there is a profit of 13.5% over the four years.
It seems to me that closing price is correct way do do AIM as we use it month to month but the profit shown is way too high, it seems to me, to be realistic.
So, which approach is best for selecting a position to buy into?
Thanks,
Allen
