TSPcalc math sample

[mjedlin66]

This comes up a lot. It is definitely my fault that I don't have a math sample up on the website yet. But, here you go, based on a question I got in my inbox. This is a sample calculation of January 2018 for strategy 27594.

Based on past user questions, I would guess that you need these three points.

1. Trading days and calendar days are different. Trading days exclude weekends and holidays. Looking at 27594 in January, the 8th trading day was January 11th for 2018.
2. 100% of your funds move each trade. So on the 8th trading day of January, you would move 100% of your money from the I fund to the S fund.
3. Gains/losses must be compounded.

Gain/loss Equation:
(New price - old price)/old price

The first timeframe is LAST DAY December 2017 - January 11th 2018, I fund:
Jan 11th I fund price: 31.7895
Dec 29th I fund price: 30.8556

So...
(31.7895 - 30.8556)/30.8556 = .0303 (3.03%)

The second timeframe is Jan 11th - Jan 24th, S fund:
(50.7837 - 50.0579)/50.0579 = .0145 (1.45%)

The third timeframe is Jan 24th - Jan 31st, G fund:
(15.5720 - 15.5649)/15.5649 = .000456 (0.05%)


To compound these together, add 1 to each decimal and multiply them:
(1 + .0303) * (1 + .0145) * (1 + .000456) = 1.0457

Now subtract 1, and multiply by 100 to convert to a percentage:

1.0457 - 1 = 0.0457

.0457 * 100 = 4.57%.

[mjedlin66]

Actually there is a math sample on the website. I completely forgot about that excel based tutorial I wrote a year ago. Am I getting old?

[Aitrus]

No. It's probably either too much beer or not enough, depending on your normal habits.

[cosmo]

I have a question. In the example, you say make a move on the 8th trading day
of the month. Is this IFT supposed to be effective by this day, or initiated on this day?

[mjedlin66]

I have a question. In the example, you say make a move on the 8th trading day
of the month. Is this IFT supposed to be effective by this day, or initiated on this day?

If your trade is effective on the 8th trading day, then your IFT must be initiated by 12pm eastern time on the 8th trading day.

You can initiate earlier though. For instance, if you submit an IFT at 12:01pm eastern time OR LATER on the 7th trading day, then it will be effective on the 8th trading day.

[mjedlin66]

No. It's probably either too much beer or not enough, depending on your normal habits.

Doc Aitrus, you are a genius.

[sonofnthng]

The day highlighted in white numbers is the day you must trade before noon. Notice, it's still the same color/fund as the days prior.

Funny as this is one of 2 strategies I follow. Boy I wish I was following it in January-April...

[ProduceMan]

The day highlighted in white numbers is the day you must trade before noon. Notice, it's still the same color/fund as the days prior.

Funny as this is one of 2 strategies I follow. Boy I wish I was following it in January-April...

So......I guess when you see “the same color/fund as days prior”, the recommended move has a range of days. Based on the range, would the first day be the best day to IFT?

[mjedlin66]

The day highlighted in white numbers is the day you must trade before noon. Notice, it's still the same color/fund as the days prior.

Funny as this is one of 2 strategies I follow. Boy I wish I was following it in January-April...

So......I guess when you see “the same color/fund as days prior”, the recommended move has a range of days. Based on the range, would the first day be the best day to IFT?

No sir. The background color is the fund that you are invested in on each day. The white number indicates when your trade is due. You enter your trade before noon eastern on the white number day. Then, your money will be invested in the new fund at market open on the NEXT trading day, so the background color changes on the NEXT trading day.

In the below example, you would be invested in the S fund (blue) through close-of-business on September 18th. Before noon eastern on the 18th, you would enter a trade into the I fund (pink). That trade would be effective at close of business on the 18th. Therefore, you spent the whole trading day of the 18th in the S fund, and your time in the I fund really starts on the 19th.