![]() For Shorts, if no amount is specified the Long amount is used. Eg 1000 shares for Long and 500 for Short. Long and short positions can have different settings. See the % of Current Equity section below for an example. % of Current Equity to risk - allows you to control position sizes depending on the performance of the portfolio and the volatility of each stock.In other words increase cash amounts when the portfolio produces profits, and decrease when losses occur Fixed percentage of Current Equity - allows you to vary the cash amount of each trade depending on the performance of the portfolio.Fixed percentage of Starting Equity - is similar to Fixed cash amount, except that the amount is a specified percentage of starting equity.Fixed cash amount - means that all trades have the same cash value, so high-priced stocks will have a smaller number of shares than low-priced stocks.Fixed number of shares - means that all trades are entered with the same number of shares regardless of the price or volatility of the stock.If the amount is too low the testing engine may not have sufficient cash to enter positions even though a Buy/Short signal is found.įive position sizing algorithms are available: Is the amount of the cash in the portfolio at the beginning of the Test.Ĭhoose an amount which is appropriate according to your position sizing and maximum positions settings. ![]() ![]() You could then run multiple Tests with perhaps different MA Periods and easily compare the results to see which is more profitable. when there are more buy signals than position slots available, choose stocks in descending order of 10 day Average Volume.maintain no more than 10 open positions at a time, with a maximum of 5 new positions on any one day.buy 100 on each trade regardless of stock price or volatility.close a position, using a target, if it gains more than 20%.close a position, using a stop, if it loses more than 5%.sell when the Close Price crosses below a 5 day Moving Average.buy when the Close Price crosses above a 10 day Moving Average. ![]() For example, a Strategy may consist of the following elements: You can run and compare multiple Tests for the same Strategy to quickly see how criteria or parameter changes affect the results.Ī Strategy consists of trade criteria, stops, targets, and position sizing rules. Tests can be made against specific symbols or you can use position sizing rules to simulate multi-holding portfolios. Backtesting allow you to test trading strategies across a range of historical dates. ![]()
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