Advanced Automatic Investor

[aptus]

Hello NeuralNet,

The studies assume the closing price because that data is easy to come by. And it doesn't affect the comparison.

The intent of all the studies was to show how AI results compared with the Buy and Hold strategy's results. Therefore as long as the same prices were used for both Automatic Investor and the Buy and Hold strategy, the comparisons are valid.

I could have used an average of the high, low and close prices, but the close was adequate in this case.

In the real world, you would most likely update AI at some time (let's say at noon), and then place your order based on any AI recommendations. Alternatively you could wait until the markets close, update AI and then place your order for the next day.

These details certainly matter when you're actually managing your portfolio on a day-to-day basis, however they're not as important for comparison purposes.

Most of the time, you won't have an order filled at the recommended AI price anyway (because by the time you place your order, the price will have most likely changed). However as long as the order amount is "close" to the AI recommended amount, everything works well.

I hope that helped a bit, please let me know if you have any other questions.

Regards,
Mark

http://www.automaticinvestor.com