exposure in % of capital

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    Posts
  • 08/26/2016 at 4:30 PM #12253 quote
    Kenneth Kvistad
    Participant
    Senior

    Hi.. What is normal exposure of capital when running a automated program?

    Is 5% too much?

    What is considered safe to really check out a live strategy?

    I see that in my crude oil strategy I have around a 9% exposure 2000euro with 4 minicontracts

    08/26/2016 at 5:09 PM #12257 quote
    Nicolas
    Keymaster
    Master
    Hi, it depends mainly on your risk aversion and of the past behaviour of your strategy. Some people will risk 1% while others can have 20% out on market. In my own experience, if you can guarantee to have less than 20% exposure, with at least the same annual gain, you are ok (with automated trading).
    08/27/2016 at 1:27 PM #12297 quote
    Elsborgtrading
    Participant
    Veteran
    Hi Kenneth. It also depend on your SL. You can argue that you only put out 4 mini contract at 1£ each- thats 4£ to begin with. but if you have a SL at 78, that 4×78£ you are risking. An easy way to see if you are overexposed is to add these lines in your backtest. Prerequisite that you use the MM code we talked about earlier. and also inset a variable for SL. 
    SL=75

set stop loss SL

graph (positionsize/equity)*100 COLOURED(0,255,0) AS "RISK"//GREEN
graph (positionsize*SL/equity)*100 COLOURED(0,255,255) AS "MAXRISK"//Aqua
    08/27/2016 at 9:00 PM #12315 quote
    Kenneth Kvistad
    Participant
    Senior
    Thanks for answer both of you. I dont use the MM code I got. I dont whant to risk exponetial right now. I just made a simple code were i could by 1 extra contract after each loss and 1 extra contract twise if i run into 3 win in a row.
    08/28/2016 at 10:57 AM #12332 quote
    Elsborgtrading
    Participant
    Veteran
    Hi Kennet, if you still want to see how your risks are, you can still use the code if you put in the values manually. But you need to use SL, eg. like this: 
    PositionSize=1/Fixed Numbers of contract you want to trade

If <conditions> THEN
BUY positionsize CONTRACTS AT MARKET
endif

Capital = 1000 //Your initial account money
equity = Capital + StrategyProfit

SL=75//your SL variable
set stop loss SL//your SL code

graph (positionsize/equity)*100 COLOURED(0,255,0) AS "RISK"//GREEN
graph (positionsize*SL/equity)*100 COLOURED(0,255,255) AS "MAXRISK"//Aqua
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exposure in % of capital


General Trading: Market Analysis & Manual Trading

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Kenneth Kvistad @kenneth_kvistad Participant
Summary

This topic contains 4 replies,
has 3 voices, and was last updated by Elsborgtrading
9 years, 5 months ago.

Topic Details
Forum: General Trading: Market Analysis & Manual Trading
Language: English
Started: 08/26/2016
Status: Active
Attachments: No files
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