Fixed Dollar vs. Raw Profit Mode
Author: hasenhas
Creation Date: 2/1/2013 7:41 AM
profile picture

hasenhas

#1
What is the difference between the Raw Profit Mode and the “Position Options” using the setting “Fixed Dollar”? In the Raw Mode all possible trades are included. If I use the Position Options and there “Fixed Dollar” i.E. with 10.000 per Trade,the number of trades (and the results) varies.

Only if I reduce the fixed Dollar amount to approximately $ 3000 the result remains in the Position Options constant.

Why does this happen?

Thanks
profile picture

Eugene

#2
In RP mode, the concept of "Starting Capital" does not apply. If at least 1 share can be purchased using the selected sizing, all trades will be taken. With one obvious exception to Fixed Dollar option: if a security's price exceeds specified Fixed Dollar value, WL can't purchase even one share.

In Port. Sim. mode, money management rules and equity constraints apply. "Fixed Dollar" in Portfolio Simulation mode is NOT equivalent to the Raw Profit option of the same name. Here it is taking trades until that makes your strategy run out of capital.
This website uses cookies to improve your experience. We'll assume you're ok with that, but you can opt-out if you wish (Read more).