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View Full Version : Portfolio risk management for single and multiple systems


Shane Baker
18th April 2006, 06:35 AM
Hi David

It would be great if we could place some risk allocation variables for multiple systems and single systems in TradeSim. Examples would be;

1. for a single simulation if the portfolio risk ( open equity minus stops) was greater than 20% then sell portions of trades to balance protfolio back to 20% overall risk.

2. for multiple system testing I might wish to have 60% of my capital allocated to the long term system and 40% of my capital to the other systems. If I could dynamically reallocate the capital so that we maintain this function, say on a quarterly basis then money may be swept from one system set to the other dependent upon performance.

Cheers

Shane

David Samborsky
2nd May 2006, 01:05 PM
This becomes the domain of multiple protfolio analysis using a common pool f funds.