Stop-Loss Simulation Return

Problem

Simulate a long position with a stop loss: enter at prices[0] and exit at the first price at or below entry * (1 - stop_loss), or at the final price if the stop never triggers. Return exit / entry - 1.

Return 0.0 for empty prices, a non-positive stop loss, or a zero entry price.

Hint

The stop triggers on the first bar whose price reaches the threshold.

Test cases

case 1

in: [[100,95,90,80],0.1]

expected: -0.09999999999999998

case 2

in: [[100,95,105,110],0.1]

expected: 0.10000000000000009

case 3

in: [[100,90,80],0.05]

expected: -0.09999999999999998

case 4

in: [[10,10,10],0.2]

expected: 0

Starter codePython

def stop_loss_simulation_return(prices, stop_loss):
    # Your code here
    pass

4 test cases · run your code against them in the editor