Trade analysis
As you remember, the difference between trading and investing is, broadly speaking, the number of trades. If you buy and hold a position in an asset for 1 year or more, then it’s an investment. If you buy, sell, and buy the same asset or different assets again multiple times during the same year, it’s trading.
Why a year?
According to most tax laws, holding a position for 1 year and 1 day qualifies it as an investment, and any profit resulting from this activity is taxed at a discounted rate. If you held the position even for 1 day less than 1 year, it will be considered trading and the resulting profit will be taxed at a full income tax rate. This rule is applicable mostly to equities trading, but at least it makes sense to use 1 year as a reference term.
So, the strategy is actively opening and closing positions during a given period. Regardless of the total net profit (or loss) for the entire period, first, and above all, we are interested in...
