exposure in % of capital

• 08/26/2016 at 4:30 PM #12253
  Kenneth Kvistad

  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

  

  Kenneth Kvistad

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  08/26/2016 at 5:09 PM #12257
  Nicolas

  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).

  

  Nicolas

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  08/27/2016 at 1:27 PM #12297
  Elsborgtrading

  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

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  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

   

  

  Elsborgtrading

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  08/27/2016 at 9:00 PM #12315
  Kenneth Kvistad

  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.

  

  Kenneth Kvistad

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  08/28/2016 at 10:57 AM #12332
  Elsborgtrading

  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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  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

   

  

  Elsborgtrading

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