How do Simulations of trading European markets handle changes in the value of local currencies relative to the base currency of the model? Just want to make sure I am not getting completely mislead by the results.
Thanks,
Daniel
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Anyone have an answer to this one? I tried searching the past discussions on here, but wasn't able to find anything definitive.
Thanks!
Currencies are converted according to the exchange rate on each date. I'm not sure that answers your question; if not, please follow up and I'll do my best to answer.
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thanks yuval, that answers the question
As a follow up on this discussion, when I am importing European trades from my brokerage into a USD Base Portfolio123 Strategy I assume I need to convert everything to USD first??? Or does P123 assume that the numbers for a given trade are in the base currency of the security being traded???
It depends on how you import the transactions. If you go to the strategy's page and use the "Import Transactions" key, you should input dollar values. If, on the other hand, you click on "Add Transaction," you should use the European currency value.
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