1. Advanced Money Management
 

1.1. Introduction

The Money management plug-in let you take deep control over which instruments to buy, sell, short or cover, at which price and for which amount.
It will also let you you create advanced metrics to assess and evaluate any trading system.

You can also create variables within your advanced money management script and use the simulator optimizer to optimize these variables. 

1.2. Create money management rules

In the 'Update trading system' or 'Create trading system' form, click on 'Advanced money management'; these money management rules you are about to create will be associated with the current trading system.  

You can also create money management rules by selecting (Analysis -> Advanced Money Management)

1.3. Money management events

There are five money management events:

·         OnNewTrade: Called before the application open a position

·         OnCloseTrade: Called before the application exit a position

·         OnEndPeriod: Called at the end of a period (On historical back testing a period is a day, a week or a month, depending on the timeframe)

·         OnStartSimulation: Called just before the simulator starts

·         OnEndSimulation: Called just after the simulator ends

Each event has its own variables and functions; you can create a script for each event.

Example (OnEndPeriod Event):

We are going to create a script that will order the simulator not to take new positions for the next 30 bars if the portfolio drawdown is below -20 percent.

The Script: 

if(Portfolio.Drawdown < -20)

{

// If portfolio drawdown is less than 20 percent, then we order the simulator

// not to take new positions for the next 30 bars

Functions.SkipPeriods(30);

}