Compounding buys in trading system

• 12/10/2020 at 10:43 AM #153176
  rush1884

  Hi,

  I was wondering if anyone knew how to use the trading system so that every time I make a trade the trade investment is as a proportion of my portfolio value not an arbitary £/point. Obviously when backtesting a system i want to see how the effects of compounding has. If I look over a 10 year period and my starting buy level is £1/point (reflecting a 20% portfolio investment) this can become very small as the portfolio increases in value by say year 5 where the £1/point only equates to a 5% portfolio investment.

  If you could help that would be great, if you are unsure what I mean then please let me know.

  Chris

  

  rush1884

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  12/21/2020 at 1:13 AM #154677
  robertogozzi

  This code will show you (in the variable window pf ProBacktest), the percentage of your investement compared to the beginning.

  The percentage increases when you  lose and decreases as you gain. In this case at the end your investment is 83.5% compared to a starting 100%:

  DEFPARAM CumulateOrders = false ONCE tp = 50 ONCE MA = 600 ONCE MyCapital = 10000 ONCE LotSize = 1 MyEquity = MyCapital + StrategyProfit MyInvestment = MyCapital / MyEquity if close crosses over average[MA] then buy LotSize Contracts at market set target pprofit tp endif if close crosses under average[MA] then sellshort LotSize contracts at market set target pprofit tp endif graph (MyInvestment * 100) AS "PerCent"

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  DEFPARAM CumulateOrders = false ONCE tp        = 50 ONCE MA        = 600 ONCE MyCapital = 10000 ONCE LotSize   = 1 MyEquity       = MyCapital + StrategyProfit MyInvestment   = MyCapital / MyEquity if close crosses over average[MA] then    buy LotSize Contracts at market set target pprofit tp endif if close crosses under average[MA] then    sellshort LotSize contracts at market set target pprofit tp endif graph (MyInvestment * 100) AS "PerCent"

   

   

  

  robertogozzi

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