My program is working fine but I have some questions about the Portfolios Simulation mode. I wanted to verify some results from a study done by M. Faber (Ivy Portfolio) using a simple MA rule. It has five indexes and each is turned on or off based on the MA rule. I had an initial portfolio of $100,000 and used the Portfolio Simulation Mode with the Percent Equity option set to 20%. My intention was to have an equal weighting of each portfolio (five positions) and to be in cash when the MA rule is violated. I did not want to have short positions nor use margin account to match the Faber study. He used Ned Davis Research Program for his work.

1. In the Equity Curve tab you are able to plot the number of open positions but if I try to copy the data in the figure it does not include this data (number of open positions). Is there any way to get this information into the clipboard or into a data file?

2. I notice that the initial allocation on the Equity Curve has $100,000 in all three columns (Equity, Long, Short and Cash) yet I only have $100,000 to begin with. Could you explain why I have what looks like $400,000 to start with?

3. The only way I could get all trades to execute was to set the margin ratio to 1.25 (greater than 1). I also saw some negative cash positions in the back test which I assume is from the margin account. I was hoping to just set each trade to use 20% of total assets at each point or whatever cash position remains whichever is less. Is there some way to set this up in the Portfolio Mode? Any help you could provide would be appreciated.

Great program and very powerful tool - however it is so extensive hard to wade through all the intimate details sometime.

1 - It would be good if the Equity tab copied open positions to the clipboard but it does not, and an easy workaround isn't coming to mind.

2 - Speaking about the Performance tab, there are four columns: (combined) Equity, Long and Short (trades in particular), and Buy&Hold (not Cash). These numbers are not added up. They trade individually, reflecting three different faces of the system plus B&H results for comparison. Likewise, the equity lines on the Equity graph (Equity, Cash, B+H, Long, Short) should not be added up. You begin with what you chose from the position sizing dialog, or $100,000 by default in Portfolio Simulation mode.

3 - That's expected. 20% by 5 is 100%, and choosing 100% of equity virtually guarantees that quite a bit of trades will be skipped. For the reason why, check out "100% of Equity Sizing" in the Wealth-Lab User Guide (Help menu) > Strategy Window > Backtesting Strategies > 100% of Equity Sizing. This introduces an important concept of the basis price and also explains why you may get skipped trades on particular dates using 100% equity.

The Position Options PosSizer's "Skipped trade solution" option can help with that by adjusting the basis price.

Hi!
I have the following problem with the Portfolios Simulation mode.
I set the:
Starting Capital - 200 000
Precent of Eqinty - 90

Then run my strategy.
Get a Perfomance, for example, Net Profit = 200000
Then press F5 repeatedly and after each press Net Profit has different values.
Why????
I do not change my strategy code. Just press F5 in Perfomance window.

Sorry, for my bad English, I'm from Russia

QUOTE:
Hi!
I have the following problem with the Portfolios Simulation mode.
I set the:
Starting Capital - 200 000
Precent of Eqinty - 90

Then run my strategy.
Get a Perfomance, for example, Net Profit = 200000
Then press F5 repeatedly and after each press Net Profit has different values.
Why????
I do not change my strategy code. Just press F5 in Perfomance window.

Sorry, for my bad English, I'm from Russia

Hi aleksey mamizerov,

And it's not the only problem caused by using a cracked version of Wealth-Lab. This account that you registered within minutes and didn't even care to take a free trial, is now locked. Have a nice day.