|
PureBytes Links
Trading Reference Links
|
Brett,
That is very good. As a slilghtly different method I take 60% of my chips and divide it by the
number of commodities or equities I want to trade. Then, if it is for stocks I would divide by the
share price to get the number of shares to trade (I only trade commodities), and round it down to the
nearest round lot. If it is for a commodity trade I divide by the margin to get the number of
contracts to trade. I always trade the same size when I have a loser, because I want to win it back
at the same rate at which I lost it. The original 40% remains liquid (say in Treasury's or a fund)
incase I get killed somewhere, so I still have some chips to play the game. Once a month I take a
total and see what the new 60% figure is and make an adjustment somewhere or add something new if I
want to. Just a thought. AMA
bam2@xxxxxxxxxxxxx wrote:
> Russ,
>
> There is a relatively simple method that you could use, though I don't know if it is what you are
> looking for.
>
> You could set a starting equity to trade your system and buy more or fewer shares based on how
> much capital you have left after a trade. For instance, lets say you set your starting capital at
> $50,000. Well, obviously you could only buy $50,000 worth of stock or , lets say, 625 shares of an
> $80 stock. Ok, when you exit the trade, if you made a $1,000 profit you now have $51,000 to trade
> with (or $49,000 if you had a $1,000 loss). So, if we want to trade another stock, and the price
> of that stock is $50 per share, we can buy 1020 shares.
>
> The benefit of this method is that you are buying more shares if you are winning and fewer shares
> if you are losing. Also, the simulation is more realistic--we are in reality limited to how many
> shares we can trade based on our available capital.
>
> I do have some EL code for this if you are interested. Let me know and I'll post it.
>
> Brett
|