Choosing which open parcels to sell in portfolio tracker
Does your portfolio module allow the user to choose which open position(s) are to be sold?
Currently it seems that rules average out the entry price of all open positions and then force earliest parcels to be sold first. This may not be what the user is doing.
The portfolio summary report then tries to give the user feedback on winning/losing trades and then a further breakdown on open/closed positions. The summary data provided is misleading because of the rules that have already averaged out the positions and forced earliest parcels to be sold first. It tells you there have been losing trades when there are not and can often misrepresent the average entry price of open positions. As a simple example;
parcel 1 - Buy AAPL 10000@$700
parcel 1 - Sell AAPL 5000@$630
parcel 2 - Buy AAPL 20000@$500
parcel 2 - Sell AAPL 20000@$550
In this example I have completed one partial losing trade, one full winning trade and I still retain part of parcel 1 APPL 5000@$700 (open position with unrealised loss). Try running this in portfolio. doesn't seem to be able to handle this.
Am i doing something wrong? Any feedback would be appreciated.