Money Management – help needed

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04/17/2016 at 1:55 PM #5516 quote
David
Participant

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Hi – I’m new to PRT and the forum – so I hope someone can help clarify things for me:

I wish to set the contract size by using the following formula:

Contracts = (0.002 x Equity) / (ATR[100] x PointValue)
```
lotsize = (0.002 * 10000) / ((AverageTrueRange[100](close))  * Pointvalue)
```
(I know that you can’t call equity – that is fine).

The problem is that I get some weird results in backtesting & I think it’s due to the contracts. However, I am not sure if it’s to do with the base currency needing converting or PointValue being incorrect. How can I get a print to output on PRT & where would I find that?

I wish to trade on many different types of markets.

Any advice gratefully received.

David
04/17/2016 at 7:16 PM #5529 quote

Nicolas
Keymaster

Legend

Hi David, if you wish to print out information on ProBacktest, you can use the GRAPH instruction : http://www.prorealcode.com/documentation/graph/

I also made a short blog article on this, here : http://www.prorealcode.com/blog/debugging-probuilder-graph-instruction/

You’ll find it easy now to debug your code in ProBacktest, hopefully. 🙂

04/18/2016 at 2:36 PM #5590 quote
David
Participant

Average
Thank you so much Nicolas. That really is useful.

I wonder if you can help with the code of another money management technique? I am looking to code the turtles risk management model.

How would I standardise the dollar per point code on a range of markets to risk 1% on each trade for a range of markets using this formula:

Units = 1% Account Value / ATR x Dollars per Point

Here is my first attempt
```
SLbuy = (TRADEPRICE(1) - (AverageTrueRange[20](close))) 
lotsizebuy = (0.01 * 10000) / (((AverageTrueRange[20](close)) * (SLbuy)) )
```
04/18/2016 at 4:38 PM #5593 quote

Nicolas
Keymaster

Legend

You want to risk 1% of what? Of your account balance? = 10.000GBP in your example?

04/18/2016 at 4:44 PM #5594 quote

David
Participant

Average

Yes that’s right £10000 in the example is the account balance…

(It should be £ not dollars in the formula Units = 1% Account Value / ATR x £ per Point)

04/19/2016 at 10:02 AM #5634 quote

David
Participant

Average

So the question is how do you get £ per point?

04/19/2016 at 11:52 AM #5640 quote

Nicolas
Keymaster

Legend

You can get the value of a point with : POINTVALUE

Value in €/$ of one pip (or one point) in the currency of the instrument. PipValue=PointValue.
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