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Portfolio123 » List all forums » Forum: Simulations and Portfolios » Thread: Accuracy of trading costs |
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sgmd01
Advanced Member
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Hi, I have several simulations/portfolios that select positions from a small universe. These simulations/portfolios allow sold holdings to be re-bought at current rebalance. During the rebalance the portfolio suggests selling the current holdings and the simulator shows a transaction selling the current holding yet both the simultor and portfolio maintain the holding. Since the simulator and portfolio show many more transactions than actually occur are the transactions costs accurate or overestimated? To follow one of these portfolios should one ignore the phantom transactions and just maintain the positions that are in the holdings? Thank you very much for the help. |
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