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Create calculator.py
Browse files- utils/calculator.py +46 -0
utils/calculator.py
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def simulate_trading(signals_data, initial_capital=1000, investment_per_buy=100):
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"""
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Simulates trading based on buy and sell signals.
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Parameters:
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- signals_data (pd.DataFrame): DataFrame with 'Close', 'Buy_Signal', and 'Sell_Signal'.
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- initial_capital (float): The initial capital at the start of the trading period.
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- investment_per_buy (float): The fixed amount in dollars to invest at each buy signal.
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Returns:
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- float: The value of the stock currently held at the end of the period.
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- float: The amount of cash remaining if any.
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"""
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cash = initial_capital
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holdings = 0
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for _, row in signals_data.iterrows():
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# Buy
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if row['Buy_Signal'] and cash >= investment_per_buy:
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shares_bought = investment_per_buy / row['Close']
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holdings += shares_bought
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cash -= investment_per_buy
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# Sell
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if row['Sell_Signal'] and holdings > 0:
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shares_sold = holdings * 0.25
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holdings -= shares_sold
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cash += shares_sold * row['Close']
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# Calculate the value of the remaining stock holdings at the last known price
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final_stock_value = holdings * signals_data.iloc[-1]['Close']
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return final_stock_value, cash
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# Example usage
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if __name__ == "__main__":
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# Assuming signals_data DataFrame exists with 'Close', 'Buy_Signal', 'Sell_Signal'
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signals_data = pd.DataFrame({
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'Close': [100, 105, 103, 108, 107], # Example close prices
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'Buy_Signal': [True, False, True, False, False],
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'Sell_Signal': [False, True, False, True, False]
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}, index=pd.date_range(start='2020-01-01', periods=5, freq='D'))
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final_stock_value, remaining_cash = simulate_trading(signals_data)
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print(f"Final Value of Stock Holdings: ${final_stock_value:.2f}")
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print(f"Remaining Cash: ${remaining_cash:.2f}")
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