- ago
Hello,

I use a strategy with "Max risk Percent" as position size.
I don't understand why by modifying my risk per position the PositionCount changes as you can see in the optimization below:




- I unchecked “retain NSF Positions”
- No margin
- I use the “transaction Weight” block

What could be the reasons?
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Glitch8
 ( 11.08% )
- ago
#1
It’s simply that if the maximum risk becomes too high the number of shares becomes too high and you can’t afford the position. The higher the max risk the higher the number of shares so the greater chance this happens.
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- ago
#2
What is this share limit due to? the price of the stock? the capital ?

what would be the alternative to be as realistic as possible? distance from the stop sign?
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- ago
#3
You can find your Risk % question(s) answered if you simply strike F1 (Help) > Strategy > Strategy Settings > Max Risk Percent.
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- ago
#4
What makes buying shares becomes too high and you can’t afford the position? What is the limit that prevents a position from being taken?
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Glitch8
 ( 11.08% )
- ago
#5
The limit is available capital, just like in real life.

What is increasing is the QUANTITY (number of shares to purchase) of the buy order. You wind up trying to purchase more shares than you have available capital.
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- ago
#6
Ok logically!

But also which means that if I have an open position and I open a new position, it is possible that my position will be canceled due to a lack of liquidity in my account and not the initial capital?

Why not add a way to take the canceled positions with the maximum amount allowed or an “infinite capital” system?

Thank you so much
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Glitch8
 ( 11.08% )
- ago
#7
if you want to simulate near infinite capital just set your starting capital to 1 trillion and/or your margin factor to 100:1. It's all possible now.

But the idea to size based on current available cash and not equity is interesting and we could implement that in an Advanced Position Sizer.
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