3 ms·

Does the optimization include rebalancing + trading costs?

• hydershykh 6y ago
  Trading costs are not included during the back test. Since the portfolios are buy and hold, there won't be a lot of trades. Therefore, it seemed like a reasonable assumption to ignore the trading costs especially with all the 0-commission brokerage firms out there.
  • schemescape 6y ago
    In addition to trading fees, it would be good to track taxable events, (dividends and capital gains) and let the user specify tax rates on these.