In Backtests, give option that restricts duplicates of closed positions too (a la wash sale rule).
When backtesting, replacement stocks in my tests are often the same stock so that I'd be trading the same stock several times within 30 days, often with losses I couldn't write off in real trading because of "wash sale" rule. Allow me to restrict buying closed positions to simulate real tax planning of trades.
Robert Elmer
shared this idea
This feature exists in the More Settings tab of the BackTest Automation Rules.
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Don R
commented
The slider for not buying the stock is not correct for the wash sale rule since the wash sale rule only applies to buying a stock within 30 days after it has been sold at a loss and continuing to hold beyond the 30 days. As it is not not buying applies whether the stock was sold at a gain or loss. There is also a lot more to it than just waiting since if the stock is repurchased since the loss is added to the cost basis of the stock if purchased within the 30 days and continued to be held.
I am not suggesting VV should get into backtesting at this level. Just saying it doesn't do the wash sale rule as is now.
From Seeking Alpha website "The Internal Revenue Service (IRS) prohibits a taxpayer from claiming the loss on their taxes if they buy a substantially identical security within 30 days before or after the sale. Selling Apple (NASDAQ:AAPL) stock on Monday and buying it back on Friday, for example, triggers the wash sale rules. In that case, the LOSS which you attempted to realize on Monday must be applied to the cost basis of the stock purchased on Friday, giving you none of the capital loss benefits.
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Robert Elmer
commented
Yes, this has been changed since I posted this requests. Withdrawing my votes.
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Michael Montgomery
commented
It's in the automation rules, more settings tab.