I have not been able to find a setting to allow WL to take profit from the first completed trade and increase the available funds by that amount and then when the next buy signal hits - to reinvest with all (or a percent of) the funds including that profit and keep rolling it forward. Is that an option - if so, where would I find it?
Rename
Isn't reinvesting performed automatically with the equity curve value increasing on each bar? New positions are taken with regard to the new equity curve value, not the starting capital as if the profits weren't reinvested.
It does not look like it is. Looking at the equity curve it seems to be drawing down and then selling and going back up. I set up the strategy with 100,000 and told it to use 99,000 as the amount for a trade. Margin is set to 1. I have it set to multiple positions. Using stock symbol MARA. It shows that it made $85K compared to the benchmark of 25K. As I look at the bottom of the Equity curves, the bottom is increasing and it looks visually like it is making the same size trades but leaving lots in cash. It created 23 positions in the last year. As best I can tell it is accumulating the profit but not using it.
If you want to walk through an example, show us the example - attach an image. From what I gather, the strategy made 85K profit (at the end? in the middle?). Let's say the peak Equity was 185K - that' s not enough to buy 2 positions with 99K fixed sizing. The strategy is able to buy only one 99K position with about 85K left over in cash.
Try 49 % of Equity sizing. You'll be able to buy 2 positions right from the beginning and all along the backtest.
NOTE! If you use market orders, apply a little margin (or reduce sizing to, say, 45%), so that trades don't get rejected for price gaps. For more info, see Help (F1)> Strategy > Strategy Settings > Basis Price
Try 49 % of Equity sizing. You'll be able to buy 2 positions right from the beginning and all along the backtest.
NOTE! If you use market orders, apply a little margin (or reduce sizing to, say, 45%), so that trades don't get rejected for price gaps. For more info, see Help (F1)> Strategy > Strategy Settings > Basis Price
You need to use Percent of Equity 99% to use the profits, instead of fixed 99,000 like you used.
It's not clear what the goal is, but he did say "multiple positions". Of course you can reinvest profits with 99K fixed too - but you'll need 198K before you get the second position.
Clarifying, 99% (or more) at 1:1 margin gives you 1 large position, reinvesting every time. If you want multiple positions, you need to use sizing 50% or less with 1:1 margin./
Clarifying, 99% (or more) at 1:1 margin gives you 1 large position, reinvesting every time. If you want multiple positions, you need to use sizing 50% or less with 1:1 margin./
QUOTE:
You need to use Percent of Equity 99% to use the profits, instead of fixed 99,000 like you used.
Thanks - this makes total sense but I had not noticed it before. My strategy is buying when RSI is under SMA (optimized) and sell when it achieves 10% profit AND RSI croses over SMA (optimized). The best period to buy was after 3 and best period to sell was after 1. Best SMA was 20 days. Changing to Percent of Equity jumped the gain to 342K after factoring in that MARA is down quite a bit and waiting on the next up move. The latest position is $59K down and still up $342. I can tell on the equity graph that 99% is being used for each purpose and holding until it achieves the sell and then sitting until the next buy is triggered. Thanks - that is what I was looking for.
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