Pathfinder swing TS
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Oskar,
If you want to run them all than 20K is not enough. Actually due to the leverage you only pay partly of the nominal value. Underlying value is much higher
and can easily be between 200K or 400K when you have 15+ systems running. You can find the underlying value on your daily statement. So what happens if
the market is against you and you have several days of huge losses? You blow-up your account.
The BT always start with a starting capital of 10K, AUS$15K or HK$100K. If you want to be relatively safe, take that amount per instrument.
You have to calculate for yourself what you can bear and what won’t keep you awake at night.
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@Oskar,
Sorry for the late reply….
I don’t think it is the best way to look at the DD and find out if you are overleveraged. A drawdown says only something of the past and nothing about the future. The DD can be
very low in the BT but can easily twice or tripple the amount of the coming trade.
I’ve also checked the directions in the book from IG what you received when you opened an account. If you look at the part risk- and capitalmanagement (page 17, Dutch version),
you find out that it is recommended by IG to have a maximum leverage of 10:1. This means that you need to have for every €10K of positions €1K of capital.
How will you get the nominal value of your positions? If you check your daily statement of IG you see in the upper left corner the summary of the long and short positions. These positions
are converted to your local currency. You see there that they substracting long and short positions. I would say that you add both long and short positions together to get to your
total exposure. If your total exposure is for example €150K, you need to have at least € 15K of capital if you follow the recommendations of IG.
But this is afterwards of course. Once your positions are opened it is not easy to reduce them without stopping the code. You also do not know how many trades will open until the next period.
But if you want to do it right and keep track of it you need to create an Excel sheet. You fill in the codes you want to activate and what the exposure will be when they all open a position.
The hard part is when will they accumulate? So if you want to play around with €4K you should not activate more codes than the nominal value of € 40K. Or you take a small buffer of one or two
codes because i haven’t had a month that they all opened a position. You have to do what feels right for you of course and where you can live with.
Kind regards,
Patrick
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I get the statement mailed between 23.00 and 00.00 hours every evening on a workingday. Maybe it is a setting. Can’t remember anymore.
You can view your statement at any time by going in the platform from IG to the right upper corner to “my account”.
Then history followed by statements. There you can choose between current or select a date.
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