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File: 20 KB, 1082x274, Maximize profit.png [View same] [iqdb] [saucenao] [google]
12347746 No.12347746 [Reply] [Original]

Start with $5000.

Assume your technical analysis has determined the following entry and exit points for the 4 stocks shown: purple, green, red, blue. Expected percent gain from each move is shown next to each exit point.

All other things being equal, when and where do you place the $5000 for maximum profit? The principal investment may be split up any way you choose at any given time.

>> No.12347766

>>12347746
Smart enough to realize that it matters based on the rate at which the entry and exit points are reached.

is the 29% gain a straight line, or does it have peaks and retracements (it does, same with every other line) its impossible to calculate this accurately without having the rate at which these investments change, not just the total change, dipshit

>> No.12347778

>>12347746
If you only allow to enter one stock then the answer is simple:
obviously the +29% and the +25% since:
1,29*1,25 = 1,6125 = 1+61,25%
And the +15 and +30% are:
1,15*1,30 = 1,495 = 1+ 49,5%
the other two are obvious.
To the highest gain is the purple one.

will cont. for the case that you can buy different stocks

>> No.12347782

>>12347766
Sorry, I should have also included: Assume linear growth during each hold for the sake of simplicity.

There is an objective right answer. The dates are shown on the graph. Thus, you can determine the rate of change.

>> No.12347792

>>12347778
Yes, you may hold as many different stocks as you want in this scenario, provided you can afford them.

>> No.12347801

>>12347746
If you would allow different stocks (which I assume is the case here) then you would have to look at how these gains actually progress meaning that we don't know how this "+45%" for example is achieved. It could be linear or just about everything so I would just assume and to make this even answerable to assume that you can only enter at the beginning and exit at the end.

I mean then you would have to permute every possible combination that is allowed.
i am just to lazy for this but I would assume that the highest gains is then achieved by "+29%" purple and then the "+30%" green to get a gain of 67,7%

>> No.12347804

>>12347801
of whops I just saw that you can also combine purple "+29%" and blue "+41%" that gains you 81,89%.
That would be highest gain then

>> No.12347818

>>12347792
>>12347782
Ah ok. If you can assume linear growth then also the option "+45%" red and "+30%" green would make sense. But I think the overlap between them makes the net gain smaller then the purple and blue combination

>> No.12347828
File: 45 KB, 558x614, brainlet.png [View same] [iqdb] [saucenao] [google]
12347828

>>12347746
Purple line then blue line

>> No.12347835

>>12347746
>ride purple 29% full
>switch all to green 15% since its rate is slightly better than red 45%
>after green 15% runs out switch to red 45%
>as soon as purple 25% starts put everything into it and let it sit till the end
>switch to blue 41% and then to green 30%

>> No.12347836

>>12347801
If we assume rough linear growth during each interval, I'm thinking:

1. Purple for 29% gain

2. Buy and hold red as soon as you exit purple, for a reduced profit (<45%)

3. Sell red and buy green. Sell green at its top on 2/6.

>> No.12347859
File: 22 KB, 392x173, gaybizproblem.jpg [View same] [iqdb] [saucenao] [google]
12347859

not going to take the time to do the analysis, but if the current "day" is within the range of an investment, simply pick the highest number in column E to put your entire stack in
prioritize as follows
25%purple>29% purple>red>blue>either green

>> No.12347880

>>12347859
fuck it, i did it
purple all the way > red until next purple> purple all the way > blue all the way > green all the way

>> No.12347894
File: 310 KB, 427x576, 1544837792362.png [View same] [iqdb] [saucenao] [google]
12347894

>>12347746

I go all-in, no questions asked.

>> No.12347896

>>12347880
Ok yeah this is it, I only estimated the rates and obviously misjudged the green 15% and the red 45% efficiency

>> No.12347905

The equation for this is simple. You need to calculate % gains per length of bar.

This means that the 29% first bar, 25% short bar and 30% bar are the best option.

1. Buy 29% bar and hold all the way
2. Buy 45% red bar and hold until the short 25% bar - the 25% short bar is huge gains for such a short time period, it is essential to not miss it.
3. Buy the green bar and hold until the end.

>> No.12347929
File: 21 KB, 570x570, 1505422108040.jpg [View same] [iqdb] [saucenao] [google]
12347929

>>12347880

>> No.12347934

>>12347896
my math is correct assuming i used the right dates. shitty graph has the 25% and 30% bars starting kind of in between 1/23 and 1/25. i assumed 1/23. if it ia 1/24 that slightly increases the efficiency of both. cba to do the math twice

>> No.12347948

The mistake is thinking that the past events affect the future events. The red bar is the based and redpilled way to do it.

>> No.12347953

>>12347905
Yep this guy right other guy wrong