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
While backtesting a portfolio or trading system, trading signals and position sizing rules are defined at startup and cannot be changed or updated dynamically during the backtesting process. The money management tool allows you to create scripts for different events that are executed during the backtesting and therefore it allows you to interact and dynamically update portfolio settings and rules.
This money management script, for example, tracks the performance of the portfolio for the previous year (from the equity curve) and reduces the exposure and the maximum number of positions in the portfolio when the performance metric drops below zero. The active positions are scaled using a market-at-open order, which means that a scale-out order (Sell 50%) is generated for each position of your portfolio.
When the portfolio gain becomes positive (One year rate of return of the equity curve is higher than zero), the default portfolio settings are restored (100% of money invested and the original number of position is set).
The different strategy settings (Portfolio equity curve performance, exposure and number of positions) can be optimized using the "Optimize" variable of the "OnStartSimulation" event of the money management script.
For more info, read this post: Money Management: Optimize a trading system
Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.
