This is a trading item or a component that was created using QuantShare by one of our members.
This item can be downloaded and used by QuantShare Trading Software.
Trading items are of different types. There are data downloaders, trading indicators, trading systems, watchlists, composites/indices...
You can use this item and hundreds of others for free by downloading QuantShare.
Top Reasons Why You Should Use QuantShare:
Works with US and international markets (stock, forex, options, futures, ETF...)
Offers you the tools that will help you become a profitable trader
Allows you to implement any trading ideas
Exchange items and ideas with other QuantShare users
Our support team is very responsive and will answer any of your questions
We will implement any features you suggest
Very low price and much more features than the majority of other trading software
For Free - No Credit Card Required
Adaptive Trading System - Minimum Percent Winners and Percent Invested
Adaptive trading strategies usually rely on one or several specific metrics to dynamically update some settings such as the percentage of capital invested. This money management script can transform any simple or complex trading system to an adaptive or auto-adjusted strategy.
When applying this money management script to a trading system, the latter will be able to automatically adjust the percentage of equity invested depending on the percentage of winning trades among previously closed positions.
The money management script allows you to specify two parameters. The Minimum Percent Winners is a threshold below which the percentage of equity invested changes. The Percent Invested allows you to specify how much money to invest when the previous threshold is reached.
Adaptive Trading System Example:
The simulator starts by calculating for each trading period, the percentage of winning trades (The number of winning trades divided by the total number of closed trades and multiplied by 100). It checks whether this percentage is lower than the minimum percentage winning trades (threshold) you have specified. If it is lower than this percentage then the money management script calls the "UpdatePercentInvested" function and instructs the trading software to invest only N% of the total portfolio equity. If it is higher than the specified threshold then it instructs the trading software to allow the trading system to invest 100% of its equity; the strategy becomes fully invested.
The money management object creates also two new time series. The first one is the percentage of winning trades over the simulation period and the second one is the accumulated number of winning trades.
Not that the Minimum Percent Winners as well as the Percent Invested parameters of any adaptive trading system created using this money management script can be optimized.