averaging down for thinkorswim

[halcyonguy]

i came across this and thought i would share

averaging down

a web form for calculating a quantity of shares to buy at some price,
to bring the average price down to a desired price.

there is also a link to download an excel file.
https://howtoexcel.net/2021/06/aver...IRcHy4tn6Eyw8WT81Hysr4a5fiKs60FCFPciXvuZfDJDY


i looked at some sites and formulas and derived this,
for calculating a quantity of shares, to lower the average price, to the desired price.

bought shares * ( bought price - desired price ) / ( desired price - current price ) = quantity of shares to buy

example
with 10 shares at $10, will need 20 shares at $7, to lower the avg price to $8, desired price.

shares     price    cost
10         10.00    100.00    bought shares / bought price
           8.00               desired price
           7.00               current price
20                  140.00    add 20 shares, at $7, to bring avg price ($10) down to desired price ($8)