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We consider an investor trading a single stock over a period of time. At the beginning of any day, the investor checks how the price
We consider an investor trading a single stock over a period of time. At the beginning of any day, the investor checks how the price of the stock has changed from the previous day and then decides how many shares if any to buy or sell at the new price. The random factor in this problem is the stock price. We assume that the transaction will occur only at the beginning of the day so it is sufficient to consider price change from one day to the next. The trading strategy is pure "buy low and sell high" as follows:
Price increases days in a row sell of share
Price increases days in a row sell of share
Price decreases days in a row buy more
Price decreases days in a row buy more
Other wise do nothing
Build an Excelbased simulation model for the trading strategy. Simulate trading days
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