How to use 100% equity in combination strategy
Author: kelvinyip
Creation Date: 12/29/2012 4:57 PM
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kelvinyip

#1
I am trying to use combination strategy. Let's say I use starting equity 100k and they are only 2 strategies, A and B. There is only one trade for strategy A on 12/3/2012, exited on 12/4/2012 and then one trade for strategy B on 12/10/2012 and exit 12/11/2012. Let's say after system exited strategy A, it is profitable and made 10k. So I want the combination strategy to enter a trade on 12/10/2012 using the entire equity 110k. However, regardingless of what I try to type into the param screen, strategy B is only using 100k.

What did I miss?
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Cone

#2
It isn't implemented that way. Instead, each strategy is allocated X amount of capital and trades its own equity curve. For details see:

User Guide: Strategy Window > Combination Strategy > Mechanics of a Combination Strategy -

2.Separate Portfolio Simulation backtests are run on each of the child strategies. Each strategy item develops its own equity and cash curves. Position sizing is based on the child strategy's equity and cash levels.


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kelvinyip

#3
Actually, my question makes no sense. It is better to follow the individual strategy equity. Sorry
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Eugene

#4
Also on the FAQ | Strategies and WealthScript > "Combination strategies" for oh so long.
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