The GoldSim Financial Module

1
The GoldSimFinancial Module
2
Financial Module Overview

• Currency editor
• Five new elements
• Fund
• Cash Flow
• Investment
• Option
• Insurance
• New math functions
• Plus a complementary function element
• History Generator

3
Currencies

• Use Model/Currencies to define your preferred
  currencyIn input fields, use Ctrl-E
  for Euros, Ctrl-Y for Yen, Ctrl-P for pound.

4
The Fund Element
5
The Cash Flow Element
6
The Investment Element
7
The Option Element
8
The Insurance Element
9
Financial Math Functions
10
The History Generator Element

• This is a new element in the Function group
• Its main purpose is to generate realistic input
  history for financial module elements
• Stock values
• Interest rates
• Inflation rates
• It has two main flavors
• Geometric growth
• Random walk

11
History Generator Random Walk
12
History Generator Geometric Growth
13
History Generator Geometric Growth or, Do You
Believe in Butterflies?

• Example simulate the Dow-Jones Average
• See DowFit.gsm (use of the Optimizer to fit a
  curve to the historical Dow Jones average).
• See FN_DowJones.gsm

14
Portfolio Rebalancing does it work?

• See model Rebalance.gsm