How does unrealized profit works?

Hi Ro,

If you wonder why there is an unrealized profit at the end of your backtest it is because QC does not automatically liquidate all your positions at the end. So if you have profitable positions at the end (and you can also have unrealized losses), they will be reported as unrealized profit.

If you want, you can, for instance, liquidate all your positions at the end of the backtest by adding that event handler to your algo:

class BBAlgorithm(QCAlgorithm):
    def Initialize(self):
        self.SetStartDate(2021, 1, 1)
        self.SetEndDate(2022, 1, 1)
        self.SetCash(778)             #Set Strategy Cash
        self.ticker = 'SPY'
        self.symbol = self.AddEquity(self.ticker, Resolution.Hour).Symbol
        self.SetBrokerageModel(BrokerageName.InteractiveBrokersBrokerage, AccountType.Margin)
        x=25
        period_BB = 25
        self.Bolband = self.BB(self.ticker, period_BB, 2, MovingAverageType.Simple, Resolution.Hour)
        self.SetWarmUp(x)
        self.Schedule.On(self.DateRules.EveryDay(self.ticker), self.TimeRules.AfterMarketOpen(self.ticker,10), self.EveryDayAfterMarketOpen)
    def EveryDayAfterMarketOpen(self):
        self.turn_trading_on = True
    def OnData(self, data):
        if self.IsWarmingUp != False:
            return
        holdings = self.Portfolio[self.ticker].Quantity
        price = self.Securities[self.ticker].Close
        quantity=1
        if holdings <= 0:
            if price <= self.Bolband.LowerBand.Current.Value:
                self.MarketOrder(self.ticker, quantity)  
        if holdings > 0:  
            if price >= self.Bolband.UpperBand.Current.Value:
                self.MarketOrder(self.ticker, quantity*-1)
    #
    # Added event handler
    #
    def OnEndOfAlgorithm(self):
    	self.Liquidate()

It is the short and “hacky” way, you know. It works for backtests when you absolutely do not want to see unrealized profits and losses. But don't use that while live trading…

Fred