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strw23
13th December 2005, 03:37 PM
Hello All
This question is for David or anybody else who feels that they may be able to help me. I have designed a system that I am trying to backtest in tradesim but cant get it to do what I want properly. I know that all the metastock/tradesim code is correct it is just the preferences and parameters I am having trouble with. Below I will list my basic rules and what I have been doing and what I want it to do and if someone could please let me know what I am doing wrong then that would be great.

Scott

I have $5,000.00 starting capital which I will be leveraging to $500,000.00. My risk per trade is 2% which works out to be $100.00 at the start of trading. I am using an initial stop, it is setup right and protective stop enabled. The problem I have is that when I put in the parameters the way I think they should be I get massive postion sizes. I know I could just use $500,000.00 with a $100.00 fixed dollar risk with no leverage but this does not represent what I want to do. Losing $1,000.00 on that simulation would not have the same affect as losing $1000.00 with a starting float of $5,000.00. Please help.

Parameters as I enter them

Position Size model
-Fixed Percent Risk

Simulation Type
-Portfolio Simulation

Simulation Options
-Use original ordering

Trade Parameters
-Initial Trading capital
-$5,000.00
-Portfolio Limit
-80% (I only ever want to use upto 80% of my starting float)
-Maximum Open Positions
-100
-Transaction Costs
-0.00% (will change later once I get my simulation working)
-Margin Requirement
-1%

Fixed Percent Risk Parameters
-Fraction of Capital Risked per Trade
-2% (is that 2% of $5,000.00 or $500,000.00)
-Position Size Limit
-30%
-Portfolio Heat
100%

Preferences

Trading Instruments
-stocks

Break even trades
-Process Seperately

Trade Position Type
-Process all trade positions

Entry/Exit Order Control
-Default

Position Size Rules
-$0.00
-0%
-0
-Accept partial trades

Volume Filter
-Limit Positions Size to 30%
-Round lot size to 1

Transaction Cost
-Fraction Costs

Non Trade Pyramid rules
-Use level 0 trades only

-Allow intraday exits

David Samborsky
15th December 2005, 02:05 PM
What version of TradeSim are you using ??

strw23
16th December 2005, 06:23 AM
I am using the latest version. I think I have it sorted out now. If I want to use 2% of my initial float of $5,000.00 with it leveraged to $500,000.00 I need to enter 0.02% in the %risk field.

Scott Tracey