exposure in % of capital

Forums ProRealTime English forum General trading discussions exposure in % of capital

Viewing 5 posts - 1 through 5 (of 5 total)
  • #12253

    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

    #12257

    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).

    #12297

    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.

     

    #12315

    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.

    #12332

    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:

     

Viewing 5 posts - 1 through 5 (of 5 total)

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