So I was watching a video on python forex trading (mostly data analysis): https://www.youtube.com/watch?v=nMOXozRTVXA&t=382s
And basically the guy is wrong in how he calculates his profits. You can see in pic related, but the gist of it is that he double counts transactions in his profit and loss.
in pic related you would buy or sell at the price in the "mid_c" column. You buy when the "IS_TRADE" column is 1 and you would sell when the "IS_TRADE" column is -1.
Ok so to calculate the profit of the first 2 transactions for example, you would take the buying price of 1.12988 in "mid_c", "IS_TRADE" is a -1 so you would be selling at this price. Then you would see the following row, with a price of 1.13337 and this time "IS_TRADE" is a 1, meaning you would buy at this price. So the profit is 1.12988 - 1.13337, or a 0.00349 loss, which is written as -34.9 in the "GAIN" column.
Anyway, as it can be seen, in the second row, he uses the buying price of 1.3337 AGAIN to calculate a loss using a selling price of 1.12593 in the following row...resulting in a 0.00744 loss....or -74.4 point loss.
Anyway I tried to comment on the video about this, but the guy told me I wrong with no explanation, and then when I showed him the 2nd grade math of it, he just deleted my comment.
I hate people who present themselves as experts on something but then can't take criticism when they're wrong on some easy 2nd grade math detail.
And basically the guy is wrong in how he calculates his profits. You can see in pic related, but the gist of it is that he double counts transactions in his profit and loss.
in pic related you would buy or sell at the price in the "mid_c" column. You buy when the "IS_TRADE" column is 1 and you would sell when the "IS_TRADE" column is -1.
Ok so to calculate the profit of the first 2 transactions for example, you would take the buying price of 1.12988 in "mid_c", "IS_TRADE" is a -1 so you would be selling at this price. Then you would see the following row, with a price of 1.13337 and this time "IS_TRADE" is a 1, meaning you would buy at this price. So the profit is 1.12988 - 1.13337, or a 0.00349 loss, which is written as -34.9 in the "GAIN" column.
Anyway, as it can be seen, in the second row, he uses the buying price of 1.3337 AGAIN to calculate a loss using a selling price of 1.12593 in the following row...resulting in a 0.00744 loss....or -74.4 point loss.
Anyway I tried to comment on the video about this, but the guy told me I wrong with no explanation, and then when I showed him the 2nd grade math of it, he just deleted my comment.
I hate people who present themselves as experts on something but then can't take criticism when they're wrong on some easy 2nd grade math detail.
