Statistical Analysis Business
The only complaint one can have this method could be the costs of opening, closing and maintaining those positions so long (since the CFDs are designed for daily speculation). The higher costs are determined by the maintenance of open positions between consecutive days. The broker does not put us money missing in position for the love we actually charged a daily basis will vary the amount of the transaction maintained and the days that we maintain. This amount is usually around 8% per annum (depending on the broker). That is, each day that the transaction remains open the broker will charge us 8% of the total money in motion (not just the given) divided by the days of the year. At the end if we have 24,000 euros in motion a year, involves an expenditure of about 1920 euros in interest (spread out throughout the year day by day), ie we discount broker about 5 euros a day (when we Moving the 24,000 euros) (150 euros per month). Moreover, each purchase is usually a commission is usually around 5 euros, say 24 purchases and 24 sales in one year (that would be more for the second year we buy and sell), that would be about 240 euros a year in transaction costs.
The idea is now trying to see what we could bring about cost method of action.
Let us assume that the strategy for his statistical analysis of the past 30 years gives us an average of 20% annually to our money (as long as we remain faithful to it at least 3 consecutive years), actually the strategy promises a 30% I’m going to figure everything much more negative to bring no surprises later. This means that the 24,000 euros invested will provide some 7200 per year on average in benefits. Okay, these gains we have achieved we will subtract and calculate the cost of the loan and interest transactions -> 7200 – 240 – 1920 = 5040. And now comes the thief of Finance as long as we get super negative (for any country contemplating possible) we remove 25% of our annual earnings (in Spain is 18%), ie, it takes away 1260 euros. Ultimately in the worst case, provided that the average return per year 3780 compliance collect tax and expenses. This is about our 20% of average earnings is at an approx. 15% of annual earnings which is not bad.