Margin Requirement effect

[J2L]

Using the last Beta Released version, I've substancially improved my test results by using the new Margin Requirement parameter.

Trying to understand the reason of that fact, I've analysed the Trade Log, but I don't find the explanation. I thought that TotalTradeCap should have increased relatively to TotalCapital. but it's not.

where is the knack ?

J2L

[David Samborsky]

The PositionValue reflects the leveraged amount of trading capital used on trades. The increases that you are seeing are the result of the increases in profit or losses due to the leveraged trading capital.

Note that just as leveraging can magnify profits it can also magnify losses.

[J2L]

Yes, I've checked that Position Size is the result of Position Size calculated without Margin Requirement (either risk limited or capital limited), divided by Margin Requirement in percent.
Wouldn't it be clearer to increase Total Trade Cap, divising Total Capital by Margin Requirement, and make all Postion Size calculations with this result ?
If not, what is Total Trade Cap column interest ? (I have never observed differences between Total Trade Cap and Total Capital column contents).

In addition, Margin Rqt has a daily cost wich it would be fair to be able to introduce in the trading preferences parameters...

J2L

[David Samborsky]

"Wouldn't it be clearer to increase Total Trade Cap, divising Total Capital by Margin Requirement, and make all Postion Size calculations with this result ? "

Yes I thought about this of a long time and decided that the Total Capital should reflect your actual money and not the "virtual money". This allows the equity curves to be directly compared with one another.

"If not, what is Total Trade Cap column interest ? (I have never observed differences between Total Trade Cap and Total Capital column contents). "

You will if you switch off "Pyramid Profits" in which case any profits get swept into the bank and not used for trading.

"In addition, Margin Rqt has a daily cost wich it would be fair to be able to introduce in the trading preferences parameters... "

Will look at adding this in the future.