Wednesday, November 07, 2012 4:41:50 PM
Thanks Tom,
I am surprised that there were 3 dividend issues in 2012 already. I only added 1 dividend issue last year
I can correct for that in the Demo Run manually. . .no problem.
When we automatically download the SPY prices into Vortex we do not see the Dividend issue.. .that's why I missed 6 of the 7 dividends that were issued since January 2011!
Does one get the Dividend of SPY in cash or is the dividend issues as shares to the investor?
Inspection of the closing prices(the ones I use) before and after the Dividend Date shows there is hardly any difference in actual prices.
The way I register the dividend is simply to add the cash value to the Reserve and leave it at that! I have the option then to aquire extra shares for the Dividend Amount manually, but then I would set the trading cost at 0.
I can not take this manual method into the Back Testing procedure.
Are you saying that with back testing one ignores the dividend payments and uses only the Adjusted Closing Prices?
OK, with the Adjusted Prices being lower any Buys and Sells would be of greater share quantity. . .Is THAT the internal mechanism by which the Yield of the Portfolio becomes approximately the same as for actually executing the Dividend into the trading, using normal closing prices?
In the end it seems to me that for the actual operation of the Portfolio it makes little different which method is used for accounting for the dividend one gets, as long as it is factored in. . . Right?
I am surprised that there were 3 dividend issues in 2012 already. I only added 1 dividend issue last year
I can correct for that in the Demo Run manually. . .no problem. When we automatically download the SPY prices into Vortex we do not see the Dividend issue.. .that's why I missed 6 of the 7 dividends that were issued since January 2011!
Does one get the Dividend of SPY in cash or is the dividend issues as shares to the investor?
Inspection of the closing prices(the ones I use) before and after the Dividend Date shows there is hardly any difference in actual prices.
The way I register the dividend is simply to add the cash value to the Reserve and leave it at that! I have the option then to aquire extra shares for the Dividend Amount manually, but then I would set the trading cost at 0.
I can not take this manual method into the Back Testing procedure.
Are you saying that with back testing one ignores the dividend payments and uses only the Adjusted Closing Prices?
OK, with the Adjusted Prices being lower any Buys and Sells would be of greater share quantity. . .Is THAT the internal mechanism by which the Yield of the Portfolio becomes approximately the same as for actually executing the Dividend into the trading, using normal closing prices?
In the end it seems to me that for the actual operation of the Portfolio it makes little different which method is used for accounting for the dividend one gets, as long as it is factored in. . . Right?
Conrad Winkelman
What is Vortex AIMing? Look for my Vortex Discussion Forum:
http://investorshub.advfn.com/boards/board.asp?board_id=1341
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