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If I hold a position in a stock that can be elected to be redeemed for a fixed amount of cash, how can I simulate that transaction in QC to get the right accounting? Can I create a fake sale transaction and specify the execution price? Or could I sell it at market and book some sort of accounting adjustment for the difference from the actual execution price and the redemption amount? Any other idea?
Thanks.
Upvote
Hi Cristian,
In regards to the first question, the only limit imposed on the number of securities an algorithm's universe can have is from the amount of available RAM. If needed, the backtesting node on an account can be upgraded to increase the RAM. See the specs of the available nodes in our documentation.
To resolve the error the backtest throws when setting c.Price>300, we need to add
Share New Research 
and data[symbol] is not Noneto the condition on line 32. See the attached backtest for reference.
For the second post above, setting the argument passed to the universe method to 3000 returns a larger universe. We just need to ensure we build the project after making changes.
Best,
Derek Melchin
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David Avraamides
Thanks, Louis. The use-case I'm referring to is for a SPAC that is trading below $10 before the redemption tender date, in which case the holder can elect to tender their shares for $10 cash. There are times where these shares are trading below $10 and it may be advantageous to tender them rather than hold them through the despac event. So I'd want a way to tell the algorithm that the shares were “sold” at $10 even though the market price never reaches that level.
I'll look into a custom FillModel. I think I could use a custom Tag to indicate that the intent is to tender the shares.
The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.
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