tax and finance charge in strategy + strategy analyser

[starcd]

Hello support,

how can I include tax and finance charge costs in my strategy and reflect it them in the strategy analyser?

My strategy instrument is a CFD. My Broker will charge me every day for finance cost. At the end of the year I have to pay tax for profit and for dividends. I will reinvest the rest of the profit after every trade.
The only way to take care of this costs and reflect them in the strategy analyser was to make fake short trades after every trade and after every year. But this is not reliable.

Is there any other way for that?

Thank you for your suggestions.

Frank

[NinjaTrader_AlanP]

Hello starcd,

It would not be possible to adjust the total net profit output on the strategy analyzer to be adjusted for a custom calculation.

If you’d like to use strategy analyzer to backtest a strategy and have your net profit adjusted for a finance cost, you could modify line 103 of the attached reference example, so that your account size is adjusted by some calculation for each trade. Some calculation being however you calculate your finance cost. The original purpose of the sample was to trade 1/5th of account size, assigned on line 61, in terms of equity shares, a dynamic clip size if you will. When running the strategy analyzer you would want to have the output window open, which is where the last profit variable will be printed.

Another method approach you could take, is after running the backtest, you could change display to trades, right click in the window>export and open the file in Excel. From here you could take a sum of the profit of each trade and have that figure adjusted. I attached a screen shot demonstrating how you could accomplish this.

Please let us know if you need further assistance.

[starcd]

Thank's Alan,

the position size is not the problem to calculate. The problem is to take care of tax and finance charge after each trade or some period. So yes, the total net profit should be adjustable by something like a "cost/charge" trade. I do this at the moment with stoploss orders, but as I mentioned this is not reliable. Doing this by Hand with Excel would take endless time if you have hundred of trates for maybe 40 timeperiods.

Thank's Frank

[NinjaTrader_AlanP]

Hello starcd,

I will put in a feature request for the option to be able to adjust trades for tax finance cost.

The feature request ID for this is, SFT-2253.

Thank you for your suggestion.

[Sidaner]

Consult with your financial advisor. Usually, such questions are addressed to them. For example, when I started my blog on Instagram, I really needed a financial adviser. I was afraid that not all of my advice would help people, so I wanted to consult someone about it. I started blogging after I read about it on https://radicalfire.com/start-a-blog-complete-guide/. I wanted to share it with other people. Once a financial lawyer wrote to me in the comments, and since then, we have started to cooperate. So, try it.

[BeckN]

Why would you want to go through all these pains just to make a profit? I worked with one of those brokers too, and he used to make a profit out of thin air. The best part was that one day I caught him not knowing the difference between VFIAX vs VOO. That day I knew that I had two options. The first option was to change the broker and hope the new one would be more competent. Second, I could put up with this one, hoping I wouldn't lose my savings. I chose the former.

[sheldengildon]

It's an old thread and back in those days, it might have been challenging to find a reliable solution for factoring in these costs. Making fake short trades may not have been the most accurate method. However, it's important to note that tax and finance charge regulations can vary across different jurisdictions and timeframes. For more up-to-date information and potential solutions, it's best to consult with a financial advisor or check out stephenswmg.com. While they specialize in retirement planning, they could provide insights into tax implications and financial considerations that might help with your trading strategy.