- ago
At a point in time are there steps/methods so a strategy can be followed more accurately ?
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Glitch8
 ( 10.62% )
- ago
#1
Not sure what you mean, can you give an example?
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- ago
#2
Say I had developed a strategy that I now wanted to trade. Each position is 5% of the portfolio. And there are 100 symbols in my dataset. I look at the back test results and see that there are 5 open positions. These five orders I then enter. Then the signals show me 32 new buys and sells. 22 buys and 10 sells all sorted by weight. Do I then take all the sells of which I have 3 and place orders for those 3 and then down the list of buys, in order of weight until I reach a NSF condition.

Or do I ignore the current open positions and place orders for the 20 highest (by weight) symbols.

Or is there another method?

In each case do I at some point in time reconcile my portfolio with the back test results? If so how often so that I can portfolio can be in sync with the strategy?

I hope this helps.
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Cone8
 ( 4.98% )
- ago
#3
There's no easy answer - it depends a lot if it's a market or limit/stop strategy, the type of margin trading available, and probably a half dozen other things.

Let's assume market entries and no margin...
If you want your live trading to follow your strategy's hypothetical trading, you must assign Transaction Weight and place the trades that have the highest weight up to the amount of buying power available, assuming market sells first, and ignore the trades with lower weight for which there are non-sufficient funds (NSF). To do it, just sort the Signals by Weight and pick the ones with the highest value.

Important!
Transaction Weight is random unless you assign it to some value - like the inverse of RSI.

Of course, you'll eventually get to a place where something won't be sync'd. This is why when you're live trading, you should make sure to "Retain NSF Postions" in the Advanced Strategy Settings. If you do, your strategy will always give you signals for the hypothetical NSF positions in case you actually filled these trades in your live account. For a demo of NSF, see this video in your support channel: https://youtu.be/HXA-AetQ3Jk

If that doesn't cover it, please qualify the type of trading, time frame, margin, etc.
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