Calculating returns is different in this unit vs. previous unit

Quant Trading Strategies & Ideas
1

Course Name: Day Trading Strategies for Beginners, Section No: 7, Unit No: 1, Unit type: Notebook

Strategy returns in his unit are calculated using unadjusted open and close while in the previous unit the adjusted open and close prices were used.  Does this matter?

# Calculate strategy returns
data['strategy_returns'] = ((data.Close -data.Open) / data.Open) * data.positions

2

Hey Eric,



Yes, the use of adjusted data does matter. It's generally advisable to use adjusted prices because adjusted prices provide a more accurate and consistent representation of the strategy performance.



Thankyou for pointing this out, we will be making the necessary changes to the notebook.



Thanks

Rushda