Engineering 25
Prob 7-19
Solution
(Stock Mkt Sim)
Bruce Mayer, PE
Licensed Electrical & Mechanical Engineer
BMayer@ChabotCollege.edu
Engineering-25: Computational Methods
1
Bruce Mayer, PE
ENGR-25_Prob_6-12_Solution.ppt
The MATLAB Code
% Bruce Mayer, PE
% ENGR25 * 26Apr09
% Prob 7.19 * Prob7_19_Stock_Buy_Sell_Simulation_0904.m
%
clear
for m = 1:100 % perform 100 annual trials
BA = 0; % Set Bank Account to Zero initially
S = 0; % Set No. Shares Held to Zero initially
% Check Prices over 250 days in one year
for k = 1:250
P = 5*randn + 100; % simulate the daily price with
randn
if P < 100 % BUY in this case
BC = max(40, 50*0.06); % BrokerCommission to Buy 50
shares
BA = BA - 50*P - BC; % Reduce BankAccount due to
purchase
S = S + 50; % Increase the number of Shares due to
purchase
elseif (P>105)&(S>0) % IF have any Shares, then Sell
ALL if P exceeds $105
BC = max(40, S*0.06); % BrokerCommission to Sell
ALL shares
BA = BA + S*P - BC; % Net INCREASE in BankAccnt
S = 0; % Sold ALL Shares
else
BA = BA; S = S; % NO Change if 100 < P < 105
end
end
YrEndSale = S*P; % Sell ALL Shares at Year End using Last
Price
BA = BA + YrEndSale; % This the final Bank Accnt $-value
for Trial-m
Profit(m) = BA; % Record the Profit for Each Trial in the
Vector "Profit"
end
%
Engineering-25: Computational Methods
2
Bruce Mayer, PE
ENGR-25_Prob_6-12_Solution.ppt
The MATLAB Code
%
% Calc stats for 100 trials
Avg_Profit = mean(Profit)
Max_Profit = max(Profit)
Min_Profit = min(Profit)
SD_Profit = std(Profit)
%
% Plot Yearly and 100-Trial Avg Profit for all trials on Bar
Chart
PlotProfit = [Profit, Avg_Profit];
barh(PlotProfit/1000), xlabel('Trial'), ylabel('Profit ($k)'),
title('Prob 7.19'), grid
Prob 7.19
120
100
Profit ($k)
80
60
40
20
0
0
10
20
30
Engineering-25: Computational Methods
3
40
50
Trial
60
70
80
Bruce Mayer, PE
ENGR-25_Prob_6-12_Solution.ppt
90
The Results
Avg_Profit =
6.4799e+004
Max_Profit =
8.5629e+004
Min_Profit =
5.1189e+004
SD_Profit =
6.1951e+003
Engineering-25: Computational Methods
4
Bruce Mayer, PE
ENGR-25_Prob_6-12_Solution.ppt