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