Understanding Adjust Factors and Adjusted Stock Prices

Summary

This short platform discussion explains that an adjust factor is used to convert a stock’s real price into an adjusted price. Adjusted prices, including forward- and backward-adjusted series, are intended to keep price charts continuous across corporate actions or other discontinuities. The user’s issue is that simulated trading appears to apply the factor even when real prices are selected, changing order amounts from the expected lot multiples.

The page provides no resolution or implementation details. It reports that logs also show real prices, so the distinction between displayed or logged prices and the prices used in simulated order sizing remains unexplained. Traders should treat the note as a description of a data and simulation consistency problem, not as guidance on how to configure or correct it.

Key ideas

• An adjust factor converts real prices into adjusted prices.
• Adjusted price series are used to make price histories more continuous.
• The reported simulation issue is that factor application changes trade amounts despite selecting real prices.
• The page does not explain how to diagnose or resolve the discrepancy.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.