Analyzing Stock Trades(Single).

Financial analysis is crucial for making smart investment choices, and PostgreSQL, a robust database system, can be a valuable ally in handling financial data. In this article, we’ll explore a PostgreSQL function called bi.calculate_separate_profit_loss. It’s a tool that simplifies the process of analyzing stock trades, making it accessible to traders and analyst

Full code and all necessary setups you will find on my GitHub:


What Does the Function Do?

The bi.calculate_separate_profit_loss function is all about understanding how well your stock trades are performing. Here’s a simpler breakdown of how it works:

Important Settings.

  1. Buy and Sell Dates: You can tell the function when you bought and sold stocks by providing dates.
  2. Initial Investment and Shares: You can customize your analysis by telling the function how much money you started with (the initial deposit) and how many shares you bought.
  3. Symbols (Stocks): If you’re trading multiple stocks, you can specify which ones you want to analyze by giving the function a list of their symbols (like A, AA or AAC). Or analyze all NYSE at once !

What Do You Get?

The function gives you a table with lots of helpful information about your trades:

  • Buy Date and Sell Date: These show when you bought and sold your stocks.
  • Symbols: This column displays the stock symbols you traded.
  • Open and Close Prices: It shows the starting and ending prices of the stocks on the buy and sell dates.
  • Max Low and Max High: These tell you the lowest and highest prices the stocks reached during the trading period.
  • Profit or Loss (PL): This column shows how much money you made or lost from the trade.
  • Return on Investment (ROI): ROI is like a grade for your investment, displayed as a percentage. It tells you how well your investment performed compared to your initial deposit.
  • Initial Deposit: This is just a reminder of how much money you started with.
  • Total Position Value: It shows the total value of your investment after the trade.
  • Maximum Drawdown: This is the biggest dip in the value of your investment during the trading period, both in terms of money and as a percentage.

How It Works.

The function first checks if your input is within reasonable limits. For example, it makes sure you’re not trying to analyze a trade with zero shares or an unrealistic deposit amount.

Then, it digs into a database table called bi.pg_table to fetch the data you need. It runs some calculations to figure out the profit, ROI, and other important numbers for the specific buy and sell dates you provided.

The function in PostgreSQL is like your financial buddy, helping you understand how well your stock trades are doing. Whether you’re a trader or just someone interested in the stock market, this tool simplifies the complex world of financial analysis. By using it, you can make more informed decisions and fine-tune your trading strategies with ease.

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