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RE: FW: [amibroker] Risk compounding with gains - I cannot get round it



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Too bad! Unfortunately PositionSize= -xxx is useless to me, as I use a volatility based fixed risk model, where the risk per trade is a direct proportion of the total equity, not the Position size itself.

 

Thanks a lot for you help, in any case J

 

Regards,
Claude

 

 


From: Stephane Carrasset [mailto:nenapacwanfr@xxxxxxxxx]
Sent: Friday, February 18, 2005 15:01
To: amibroker@xxxxxxxxxxxxxxx
Subject: Re: FW: [amibroker] Risk compounding with gains - I cannot get round it

 


yes,
you're right, it was a bad idea to use
PositionSize=Foreign("~~~EQUITY", "C" )*0.2;
it is a bad idea to use
PositionSize=Equity()*0.2;

so no others solution that
PositionSize=-20;


> Hi Stephane,
>

>
> Many thanks for your help.
>

>
> However I suspect that the example below is picking up the previous
equity
> line, or something like that. (can't pinpoint exactly what's
happening!)
>

>
> I first run it with positionsize=-10;  works fine - several 100
trades
> taken. No problems
>
> I then run it with positionsize = PositionSize=Foreign
("~~~EQUITY", "C"
> )*0.1;: works fine, and seems to be giving ok results
>
> BUT
>
> I hit backtest again, and no trades are taken, implying that
positionsize =
> 0.
>

>
> Do you get the same thing I am getting?
>

>
> Cheers,
>
> Claude
>

>

>
>   _____ 
>
> From: Stephane Carrasset [mailto:nenapacwanfr@xxxx]
> Sent: Thursday, February 17, 2005 21:01
> To: amibroker@xxxxxxxxxxxxxxx
> Subject: Re: FW: [amibroker] Risk compounding with gains - I cannot
get
> round it
>

>
>
> Hi claude,
>
> use
> PositionSize=Foreign("~~~EQUITY", "C" )*0.1; // idem as
PositionSize=-
> 10;
>
> for ex run this basic system and look the results.
> I complain that Amibroker turns less and less obvious.
>
> stephane
>
>
> SetCustomBacktestProc("");
> function FindEquityAtDateTime( eq, dt, Value )
> {
>       result=0;
>    for( i = 0; i < BarCount  ; i++ )
>    {
>    if( dt[ i ] == Value )
>       result=eq[i];
>       }
>    return  result ;
> }
>
> if( Status("action") == actionPortfolio )
> {
>       bo = GetBacktesterObject();
>       bo.Backtest(1); // run default backtest procedure
>       eq = Foreign("~~~EQUITY", "C" );
>       dt = DateTime();
>
>    for( trade = bo.GetFirstTrade(); trade; trade = bo.GetNextTrade
> () )
>    {
>             EquityAtEntry = FindEquityAtDateTime( eq, dt,
> trade.EntryDateTime );
>             trade.AddCustomMetric("Equity at entry",
> EquityAtEntry);
>    }
>
>    for( openpos = bo.GetFirstOpenPos(); openpos; openpos =
> bo.GetNextOpenPos() )
>    {
>             EquityAtEntry = FindEquityAtDateTime( eq, dt,
> Openpos.EntryDateTime );
>             Openpos.AddCustomMetric("Equity at entry",
> EquityAtEntry);
>    }
>     bo.ListTrades();
> }
>
> Buy=Cross( MACD(), Signal() );
> Sell=Cross( Signal(), MACD() );
> SetOption("InitialEquity", 10000);
>
> //PositionSize=-10;
> PositionSize=Foreign("~~~EQUITY", "C" )*0.1; // idem as
PositionSize=-
> 10;
> //BAD Usage is 01*Equity(0,-1) -1 is default settings of backtesting
> //it returns the decimal part of equity
>
>
>
> > 
> >
> >   _____ 
> >
> > From: Claude Caruana [mailto:claude.caruana@xxxx]
> > Sent: Thursday, February 17, 2005 09:56
> > To: 'amibroker@xxxxxxxxxxxxxxx'
> > Subject: RE: [amibroker] Risk compounding with gains - I cannot
get
> round it
> >
> > 
> >
> > Hi all,
> >
> > 
> >
> > I'm finding real problems with implementing this so I would really
> > appreciate if there is somebody out there with the answer!
> >
> > The key is that I want my risk to be relative to current total
> equity, not
> > position size.
> >
> > 
> >
> > I understand if I use
> >
> > Positionsize = -20 , then my position size is 20% of my current
> equity.
> > Tried and tested - this works ok.
> >
> > BUT,
> >
> > If only I can assign a percentage of the current equity to a
> variable other
> > than positionsize, it would solve all my problems - something like
> >
> > CurrentEquity = XXXXX
> >
> > 
> >
> > Can anybody help? I would be really grateful!
> >
> > Thanks,
> >
> > Claude
> >
> > 
> >
> > 
> >
> > 
> >
> >   _____ 
> >
> > From: Claude Caruana [mailto:claudecaruana@xxxx]
> > Sent: Tuesday, February 15, 2005 23:23
> > To: amibroker@xxxxxxxxxxxxxxx
> > Subject: RE: [amibroker] Risk compounding with gains - problem
> >
> > 
> >
> > Hi again.
> >
> > 
> >
> > I found the problem to be that the equity() function will only
work
> if
> > placed after the buy/sell signals.
> >
> > Problem is that I need it before the buy signal in order to
> calculate the
> > position size.
> >
> > Anybody can indicate a way to determine the equity value before
the
> buy
> > signal??
> >
> > Thanks in advance for any input.
> >
> > 
> >
> > Claude
> >
> > 
> >
> > 
> >
> >   _____ 
> >
> > From: Claude Caruana [mailto:claudecaruana@xxxx]
> > Sent: Tuesday, February 15, 2005 13:12
> > To: amibroker@xxxxxxxxxxxxxxx
> > Subject: [amibroker] Risk compounding with gains - problem
> >
> > 
> >
> > Hi All,
> >
> > 
> >
> > Can anybody help me with this? I am trying to achieve a position
> sizing
> > technique where half the current total profit (assuming there is
a
> profit)
> > is re-invested into risk. Problem is that it seems like equity(0)
> is always
> > returning 250000 and the CurrentPL variable seems to always be 0.
> >
> > 
> >
> > StartCapital  = 250000;
> >
> > CapitalNow    = equity(0);                            
> >
> > CurrentPL     = ((CapitalNow-StartCapital)/StartCapital);
> >
> > 
> >
> > RiskPerTrade  = 0.001+(CurrentPL/2);           
> >
> > PositionSize = ((CapitalNow*RiskPerTrade) / stopPoints) *
BuyPrice;
> >
> >
> > 
> >
> > What I am expecting this to do is: let us say at one point the
> equity goes
> > up 2% from 250,000 to 255,000 - then:
> >
> > 
> >
> > Current PL         = 255000-250000/250000 = 0.02
> >
> > RiskPerTrade     = 0.001+(0.02/2) = 0.011
> >
> > Risk per trade now should go up from 0.001 to 0.011, but this
isn't
> > happening.
> >
> > 
> >
> > I am aware I need to arrange this to handle losses, but I first
> would like
> > to sort out this issue.
> >
> > 
> >
> > Should I in fact be using equity(0) to achieve this or should I
be
> using
> > some other function?
> >
> > 
> >
> > Thanks in advance for any help :-)
> >
> > 
> >
> > Claude
> >
> > 
> >
> > 
> >
> >
> >
> > Check AmiBroker web page at:
> > http://www.amibroker.com/
> >
> > Check group FAQ at:
> > http://groups.yahoo.com/group/amibroker/files/groupfaq.html
> >
> >
> >
> >
> >
> > Check AmiBroker web page at:
> > http://www.amibroker.com/
> >
> > Check group FAQ at:
> > http://groups.yahoo.com/group/amibroker/files/groupfaq.html
> >
> >
> >
> >
> >
> > Yahoo! Groups Sponsor
> >
> >
> >
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> >
> >   _____ 
> >
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>
>
>
>
>
> Check AmiBroker web page at:
> http://www.amibroker.com/
>
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>
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