Taxes?

[SLicK]

This might be way out there, but a nice option would be the ability to stipulate a percentage of each trade gain that would not be reinvested, but would be deducted from the total equity. That percentage could represent the taxes that one would expect to pay in the course of the real investment experience. Such an option would make the results of a ten year study, as an example, more realistic.

Or maybe someone knows a way to simulate the deduction of taxes and I haven't figured it out yet.

Tax deduction option or not, TradeSim really rocks. Great tool!

[jdfagan]

I think a more generic and useful addition to TradeSim would be the concept of periodic cashflow withdrawls (i.e., pay yourself salary/taxes/expenses). This alters the way one calculates compounded returns and is a bit tedious so having the software do this could be nice. :shock:

For example, pulling out a fixed and/or % of equity out once a year could simulate this cashflow withdrawl. This withdrawl should not have a negative impact to the % return however.

Here's a link that discusses the devilish details for cashflow rate of return calculations: http://www.gummy-stuff.org/IRR.htm

JD