Financial Analysis - Build a ChatGPT Pairs Trading Bot - Strategy Performance Computation (Optional)

The lecture discusses how to compute daily portfolio returns, focusing on the importance of shifting positions and multiplying returns. It addresses two main issues: the rationale behind shifting and multiplying, and a newly discovered problem with portfolio return calculations. The lecture also explores the complexities of short selling and portfolio weights, emphasizing the need for user-defined constraints in investment strategies.

What new insight or understanding did you gain from this video?