Course Name: Day Trading Strategies for Beginners, Section No: 5, Unit No: 10, Unit type: Notebook
Team,
shall I just consider the "close" and "open" values as the dataset I downloaded from IEXCloud for ticker BA is not including "adj close" and "adj open"?
Or is there a way to calculate them starting from "open" and "close" values?
thx
Hi Gian,
The adjusted close and open prices are asset prices after adjusting for corporate actions like spilts, dividends, or rights issue offering.
The calculation of these are based on the day of the corporate action comes into effect and you can read more on how to compute the adjusted values here. You will need access to the corporate action data and not just the open and close prices.
In the absence of the adjusted close price data, you can simply use the close price between two corporate actions for your backtesting. However, it is recommended you obtain high-quality data with the adjusted close price data.
Hope this helps!