Capital In Trade Graoh wrong?

[mcdirt]

It appears to me that the Total Capital line in the Capital in Trades graph is wrong ... I think might be offset from the Capital in Trades line by one bar. Checking the graph against the trade inspector shows what I mean ...

On the second data point on the chart below:
The chart shows the Total Capital as being just < $25,000
The Trade Inspector shows Total Capital as being $23,835

[img]www.space.net.au/~mcdirt/CITError1.gif[img]

[mcdirt]

Try again ...

www.space.et.au/~mcdirt/CITError1.gif

[mcdirt]

Bloody thumbs ...

www.space.net.au/~mcdirt/CITError1.gif

[mcdirt]

talk amongst yourselves ...

http://www.space.net.au/~mcdirt/CITError1.gif

[David Samborsky]

Hello mcdirt

The left axis represents the total "Capital in Trades" and the Trade Log and Chart match each other at the chart focus for the example you have given. ie Capital in Trades is $21821.58 on the Trade Inspector which matches up with the point on the chart.

What I will do in future is to highlight in a different color the entry in the Trade Inspector so there is no confusion.

[mcdirt]

Yes David but the (grey) Total Capital line is wrong. The trade inspector has the right figure but the chart doesn't ($23835.29 vs just under $25,000).

[David Samborsky]

Hello mcdirt

The grey line represents the total allowable capital availaible for all trades at any one time. It represents the maximum allowable capital in trades and no point on the "Cap in Trades" plot chart should ever exceed this envelope.

It also should match the "Total Trade Capital" (not the "Total Cap") entry in the Trade Inspector which is not shown in your screenshot.

Again this emphasizes the need for highlighting in the Trade Inspector to avoid any confusion in the future.

[mcdirt]

David,

What is the difference between "Total Trade Cap" and "Total Capital"? In all data points that I have checked, they are always exactly the same figure and I'm sure they were the same in the example that I sent to you.

[mcdirt]

Here's another image showing ...

1. Capital in Trades = $14,035 = correct on chart
2. Total Trade Cap = Total Capital = $26,830 yet the graph line shows the value to be < $25k?

I don't understand.

http://www.space.net.au/~mcdirt/CITError2.gif

[David Samborsky]

Hello mcdirt

The "Total Trade Capital" consists of the maximum allowable capital available to be invested in all trades whether they are pending or prospective trades. It consists of two components

1. All capital currently invested in existing trades plus,
2. Remaining cash available to invest in prospective trades.

For example if your initial capital is $50,000 and you have already allocated $10,000 to two existing trade positions then your total trade capital is still $50,000 not $40,000. However your "Capital In Trades" is $40000. If profit compounding is disabled then when you exit an existing trade with a loss then your trade capital will decrease by the same amount lost, however if you exit with a profit then the trade capital will always be maintained at a level equal to the Initial Trade Capital level and any excess will be stored in a cash reserve.

If profit compounding is enabled then the trade capital will increase as you exit trade positions with a net trade profit and will reduce when you exit trade positions with a net trade loss.

The "Maximum Trade Capital" is the same as the "Total Trade Capital" but diluted by the "Portfolio Limit factor". When the "Portfolio Limit factor" is 100% both the "Total Trade Capital" and "Max Trade Capital" should be identical. However there is a bug where the "Maximum Trade Capital" graph(grey line) is in slight error. This has been now corrected for the next release. Will also add the "Max Cap in Trades" to the Trade Log and Trade Inspector.

The "Total Capital" represents all available money which consists of money invested in trades as well as available cash.

[mcdirt]

OK, understood, thanks David. Is the "next release" a minor version upgrade (ie due out soon) and are you considering any changes in TS relating to the issue discussed elsewhere regarding the way trade pyramids are handled? Many thanks if you are.

[David Samborsky]

Hello mcdirt

Version 3.1.0 beta will contain all changes discussed regarding pyramid trades as well as some new and enhanced features. For people fortunate enough to own the Enterprise edition we have now included Trade Charts which allows you to view any trade in the trade database on a candle stick chart. It requires that you have your security data stored in Metastock binary format. You can also overlay the entry, exit, and initial stop conditions on the chart.

http://www.compuvision.com.au/Images/TradeChart.gif

[mcdirt]

Wow indeed (good choice of stock to use as the example) the new features and improvements sound really good - you've been busy. Thankyou.

[tech/a]

Well Id get in and buy or Upgrade NOW.

The way your going David this will rival or beat Trading Recipes which sells at $5K US.

Hope you have this so bound up by copy right in every country that its water tight.!!

Trust no body.
You deserve every success.
Let me know if you need some good attorneys.

John

[David Samborsky]

Hello John,

The above Trade Chart feature added to the Enterprise Edition will be the pre-cursor to TradeSim Special Edition (SE). Sorry, I can't give anymore details away at this point in time :wink:

With regards to copyright the best and cheapest software protection is to use the best copy protection software which TradeSim now employs.

[mcdirt]

SE Sounds interesting. :shock: If the new version is capable of using Metasotck data directly and not just importing Trade Databases, then perhaps it'll do Open Equity graphs and MAE etc?

Don't be a tease David. :P

[David Samborsky]

Stay Tuned!!

:D