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<SPAN
class=481194316-17092003>sorry if I'm being thick, but are you saying that only
part of the profits is reinvested in the 10% case because it's made available to
the other stocks?
<SPAN
class=481194316-17092003>
<SPAN
class=481194316-17092003><FONT face="Courier New" color=#0000ff
size=2>my understanding was that each stock is
given the initial fraction of the account specified by positionsize, then after
that, each stock is calculated independently. they compound their own gains
and losses, but gains and losses from other holdings are irrelevant. is that
correct?
<SPAN
class=481194316-17092003>
<SPAN
class=481194316-17092003>I compared trade lists with 2 stocks and 1 stock,
both at 100% position, and for the 1 stock included in both tests, they're
identical. if profits from one stock were available to the other, I'd expect the
dollar amount of those positions to vary, depending to the profitability of the
2nd stock. the fact that they're the same reinforces my impression that trades
for the two stocks are completely independent.
<SPAN
class=481194316-17092003>
<SPAN
class=481194316-17092003>if that's the case, my question stands: why are only
10% of the profits from the first trade used for the second trade when
positionsize is 10%?
<SPAN
class=481194316-17092003>
<SPAN
class=481194316-17092003>apologies again if I'm missing the
obvious...
<SPAN
class=481194316-17092003>
<SPAN
class=481194316-17092003>dave
<BLOCKQUOTE
>I
thought my simple math explanation would have sufficed but apparently it
didn't ...Example 1: You have 10,000 initial equity ... you invest it
all in XYZ which goes up 10% so you have 100 profit and 10,100 total
equity to reinvest.Example 2: You have 10,000 initial equity ...
you invest 10% of it or 1,000 in XYZ which goes up 10% so you have 10
profit and 10,010 to reinvest NOT 10,100 because the 10% gain was on the
amount invested not on the initial equity because 90% of the initial
equity was either still in cash or invested in something
else.Fred--- In amibroker@xxxxxxxxxxxxxxx, "Dave Merrill"
<dmerrill@xxxx> wrote:> thanks Tomasz, I realized that the
percentage figures must be relative to> the entire account
size.> > however, the way profits are reinvested if positionsize
isn't 100% seems> very strange to me, possibly not what you
intend.> > look at these two trades, the first two in one of the
stocks at 100%> positionsize:> >
Profit Shares
Position> 948.62
632.41 10,000.00>
276.68 632.41
10,948.60> > the first trade made $948.62 profit, which the
second trade invested, taking> a $10,948.60 position.>
> here's the same two trades with 10% positionsize:> >
Profit Shares
Position> 94.86
63.24 1,000.00>
25.51 58.31
1,009.49> > the first trade made $94.86 profit, but the second
one invested only 10% of> that profit, taking a $1,009.49 position.
that doesn't make sense to me.> > > am I off base
here? in what situations is this behavior appropriate? is> there
any way to get AB to invest all profits from each stock if>
positionsize isn't 100%?> > thanks,> >
dave> > > > Indeed % results are accurate but always
related to total initial equity,> > regardless of position size
you set with each trade. If you have> > 90% of equity in cash your
percentage risk/drawdown/etc is of course 1/10> > of values that
you would expect trading 100% of your funds.> >> > Best
regards,> > Tomasz Janeczko> >
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