Pseudocode a Solution Formula with Python – Part 2

July 15, 2022

In part two of this activity, you will use the pseudocode you created in the previous activity to develop a program that recommends purchasing or selling stock based on a percent increase or decrease of its stock price.

Background

After hearing about your proposed pseudocode solution, Harold is ecstatic about actually coding out the finished program.

For this activity, work with a partner to code out the pseudocode solution of the previous activity:

Implement the pseudocode in a Python file.
Test the logic of the program with Netflix stock prices.
- Yesterday at 4:00 p.m., Netflix’s stock price was $360.35.
- Right now, the stock price is $293.33.
Calculate the percent increase using the formulas below, and then print a message to the screen indicating if the stock should be bought or sold.
- Increase = Current Price – Original Price
- Percent Increase = Increase / Original x 100

Starter file

"""
Conditionally Yours

Pseudocode:


"""

# Increase = Current Price - Original Price
# Percent Increase = Increase / Original x 100

# Create integer variable for original_price


# Create integer variable for current_price


# Create float for threshold_to_buy


# Create float for threshold_to_sell


# Create float for portfolio balance


# Create float for balance check


# Create string for recommendation, default will be buy
recommendation = "buy"

# Calculate difference between current_price and original_price


# Calculate percent increase


# Print original_price
print(f"Netflix's original stock price was ${original_price}")

# Print current_price


# Print percent increase


# Determine if stock should be bought or sold


# Print recommendation
print("Recommendation: " + recommendation)
print()

Instructions

Using the starter file, complete the following steps:

Pseudocode your solution.
Create variables for the following:
- original_price
- current_price
- increase
- percent_increase
- recommendation
- threshold_to_buy
- threshold_to_purchase
Derive increase.
Derive percent_increase.
Print original_price, current_price, and percent_increase to the screen with formatting.
Compare percent_increase to threshold.
Set recommendation to equal “buy” or “sell” based on your Step 5 evaluation.
Print recommendation.

Challenge

Add a layer of sophistication to your program by creating a balance variable. This will serve as the amount of excess equity or money available in a portfolio.

Create logic that will take into consideration balance when determining a recommendation. Only recommend to buy if balance is five times the amount of the stock’s current price.

Hint

Use a format specifier with the f-string.

Solution

"""
Conditionally Yours

Pseudocode:
1. Initialize variables original_price, current_price, increase, percent_increase, recommendation, threshold_to_buy, and threshold_to_sell
2. Compute increase
3. Compute percent_increase
4. IF percent_increase is greater than or equal to threshold_to_sell
        THEN Set recommendation to "sell"
    ELSE IF percent_increase is less than or equal to threshold_to_buy
        THEN set recommendation to "buy"
    ELSE IF percent_increase is less than threshold_to_sell and greater than threshold_to_buy
        THEN set recommendation to "hold"
    ELSE
        THEN print("Not enough data to make a decision. Need human input")
5. Print("Recommendation: " + recommendation)
6. Initialize variable balance as float
7. Compute balance_check
8. Print balance
9. IF recommendation equals "buy" and balance_check is greater than current_price
        THEN print(recommendation)
    ELSE IF recommendation equals buy and balance_check is less than current_price
        THEN print("You should buy, but you don't have enough capital")
    ELSE
        print(recommendation)
"""

# Increase = Current Price - Original Price
# Percent Increase = Increase / Original x 100

# Create integer variable for original_price
original_price = 360.35

# Create integer variable for current_price
current_price = 293.33

# Create float for threshold_to_buy
threshold_to_buy = -10.00

# Create float for threshold_to_sell
threshold_to_sell = 20.00

# Create string for recommendation, default will be buy
recommendation = "buy"

# Calculate difference between current_price and original_price
increase = current_price - original_price

# Calculate percent increase
percent_increase = (increase / original_price) * 100

# Print original_price
print(f"Netflix's original stock price was ${original_price}")

# Print current_price
print(f"Netflix's current stock price is ${current_price}")

# Print percent increase
print(f"Netflix's stock price changed by {percent_increase:.2f}%")

# Determine if stock should be bought or sold
if percent_increase >= threshold_to_sell:
    recommendation = "sell"
elif percent_increase <= threshold_to_buy:
    recommendation = "buy"
elif percent_increase < threshold_to_sell and percent_increase > threshold_to_buy:
    recommendation = "hold"
else:
    print("Not enough data to make a decision. Need human input.")

print("Recommendation: " + recommendation)
print()
print("But wait a minute... lets check your excess equity first.")

# Challenge

# Create float for portfolio balance
balance = 5000.00

#Create float for balance check
balance_check = balance * 5

# Compare balance to recommendation
print(f"You currently have ${balance} in excess equity available in your portfolio.")

if recommendation == "buy" and balance_check > current_price:
    print("Final Recommendation: " + recommendation)
elif recommendation == "buy" and balance_check < current_price:
    print("Final Recommendation: You should buy. But you don't have enough available capital.")
else:
    print("Final Recommendation: " + recommendation)