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>For myself, risking .5% on each lets me buy 25 stocks with total initial
>risk of around 12.5%, and lets me be between 100% and 200% "invested"/at
>risk. (I'm not sure how to say it in terms of margin, is that 0% to 50%
>margined?)
a/ 100% invested = 0% margin
b/ 200% invested = 100% margin + 100% invested
where "invested" refers to your own capital put to work.
Some people substitute "invested" with being 100% long or 200% long or 50%
long 25% short (etc) - the 200% is the max one can go in an equity account.
Risk = amount presumed lost if market moves against position, stopping you
out automatically or manually.
Thus capital put to work (invested + margin) = a multiple of risk amount.
Questions:
a/ With a half % stop on positions, how frequently does the strategy stop
you out?
b/ Are transaction costs part of the half % or extra?
Thanks
Gitanshu
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