Portfolio Settings: Difference between revisions

Line 9:

# In the '''Exposure''' box, enter the maximum percentage of capital to be exposed to risk.

#: For example, with '''Exposure''' set to 50%, a maximum of 50% of the capital will be available for the sum of all positions. If an additional position causes total exposure to exceed 50%, the position size will be reduced so that the '''Exposure''' limit is not exceeded.

~~#: '''Exposure''' is defined as follows: entry price * number of contracts. This is the definition for both long and short positions.~~

# In the '''Max % of Capital at Risk per Position''' box, enter the maximum percentage of capital that can be risked per position.

#: For example, with '''Max % of Capital at Risk per Position''' set to 5%, a maximum of 5% of the capital will be available for a single position. If an additional position risks more than 5% of capital, then the position size will be reduced so that the '''Max % of Capital at Risk per Position''' limit is not exceeded.

#: '''Max % of Capital at Risk per Position''' ~~is defined as follows: entry price * number of shares. This is~~ the ~~definition for both long and short positions~~.

#: <br><div style="background-color: #E3FBE5;">'''Note''': '''Max % of Capital at Risk per Position''' cannot exceed the '''Exposure''' setting.</div>

#: <br><div style="background-color: #E3FBE5;">Note: '''Max % of Capital at Risk per Position''' ~~cannot exceed~~ the '''~~Exposure~~''' ~~setting~~.</div>

#: <br><div style="background-color: #E3FBE5;">'''Note 2''': '''Max % of Capital at Risk per Position''' is calculated based on equity, that is a % of (initial capital value + profit/loss of the closed trades). It is a general setting for the whole portfolio of symbols and strategies that limits the amount of your position.<br>If '''Max % of Capital at Risk per Position''' allows you to buy 50 contracts only, while you are supposed to buy 100 contracts according to '''Trade Size''', your strategy will buy only 50 contracts.<br>If according to '''Trade Size''', you are supposed to buy 50 contracts, but '''Max % of Capital at Risk per Position''' allows you to buy 100 contracts, , your strategy will buy only 50 contracts.</div>

# In the '''Initial Portfolio Capital''' box, enter the amount of the initial trading capital.

# In the '''Required Capital Assumptions in Margin Trading''' section, choose to use either '''Margin per Contract''' settings or '''Potential Loss per Contract''' settings.<br>

@@ Line 9: / Line 9: @@
 # In the '''Exposure''' box, enter the maximum percentage of capital to be exposed to risk.
 #: For example, with '''Exposure''' set to 50%, a maximum of 50% of the capital will be available for the sum of all positions. If an additional position causes total exposure to exceed 50%, the position size will be reduced so that the '''Exposure''' limit is not exceeded.
-#: '''Exposure''' is defined as follows: entry price * number of contracts.  This is the definition for both long and short positions.
 # In the '''Max % of Capital at Risk per Position''' box, enter the maximum percentage of capital that can be risked per position.
 #: For example, with '''Max % of Capital at Risk per Position''' set to 5%, a maximum of 5% of the capital will be available for a single position. If an additional position risks more than 5% of capital, then the position size will be reduced so that the '''Max % of Capital at Risk per Position''' limit is not exceeded.
-#: '''Max % of Capital at Risk per Position''' is defined as follows: entry price * number of shares.  This is the definition for both long and short positions.
+#: <br><div style="background-color: #E3FBE5;">'''Note''': '''Max % of Capital at Risk per Position''' cannot exceed the '''Exposure''' setting.</div>
-#: <br><div style="background-color: #E3FBE5;">Note: '''Max % of Capital at Risk per Position''' cannot exceed the '''Exposure''' setting.</div>
+#: <br><div style="background-color: #E3FBE5;">'''Note 2''': '''Max % of Capital at Risk per Position''' is calculated based on equity, that is a % of (initial capital value + profit/loss of the closed trades). It is a general setting for the whole portfolio of symbols and strategies that limits the amount of your position.<br>If '''Max % of Capital at Risk per Position''' allows you to buy 50 contracts only, while you are supposed to buy 100 contracts according to '''Trade Size''', your strategy will buy only 50 contracts.<br>If according to '''Trade Size''', you are supposed to buy 50 contracts, but '''Max % of Capital at Risk per Position''' allows you to buy 100 contracts, , your strategy will buy only 50 contracts.</div>
 # In the '''Initial Portfolio Capital''' box, enter the amount of the initial trading capital.
 # In the '''Required Capital Assumptions in Margin Trading''' section, choose to use either '''Margin per Contract''' settings or '''Potential Loss per Contract''' settings.<br>