Reporting: weighted average price source
stimming at tuhh.de
Mon Jul 7 15:23:04 EDT 2008
Am Montag, 7. Juli 2008 18:42 schrieb Charles Day:
> > So it's not a question of absolute values in bookkeeping. It's
> > a question of absolute values in computing share prices. Not
> > the same thing.
> I agree with Derek. That is, the "weighted average" price source is not
> intended to compute the cost of your holdings, but rather to compute the
> volume-weighted average price of all buys AND sells. So it needs to keep
> using the absolute value. However, it does need to be changed: it should
> ignore exchanges with a zero "amount" in the split.
> So I think we need to add a new price source of "Cost" which computes
> without absolute value and does include zero "amount" splits.
Yes. The existing "weighted average" answers a different question that the one
you are more interested in.
> I do think a volume-weighted average price can be useful; it's just more
> appropriate for measuring your personal trading performance. Maybe there
> should be a performance report designed around that.
Exactly, and it has been introduced precisely to measure personal trading
performance. I recall I basically used this in the "price scatterplot", which
is probably only about what you said. For the cost of your current holdings,
I agree this is probably wrong. Feel free to move the old one to a different
name or rename the new and the old. Maybe the old "weighted average" should
even be available only in the price scatterplot and nowhere else. But simply
replacing it is IMHO not the best way to go.
More information about the gnucash-devel