Hi,

I'm evaluating Weath-Lab developer 5.4 (downloaded it a couple of days ago), nice product! There is one aspect I can't find anything on though: Decreasing position size based on drawdown. So when the current equity is 80% of the latest equity high, I would like to resize my positions to 80% of the normal risk.

I found this post and answer:

QUOTE:

sacsharma
4/18/2008 1:24 PM

Wealth-Lab Pro 4.3

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How can I adjust position size based on equity drawdown?
I wish to reduce my position size by half if drawdown exceeds say 20%. Is this possible?
Cone
4/18/2008 1:58 PM

Of course it's possible and very simple using a SimuScript. Just look at the example for DrawDownPct in the QuickRef.

But then I search for SimuScript and find this disturbing little snippet:

QUOTE:

PosSizer

This sizing option, formerly known as SimuScripts, will be implemented in a future release.

So it's not supported anymore?

Regards
Wouter

Hi Wouter,

Your understanding is correct: decreasing position size based on drawdown -- just as many other creative ways to interact with portfolio equity to size positions -- will be possible to implement with PosSizers. As you may know, WLD5 is a complete rewrite of the product under the .NET framework, and its remaining functionality is released in phases. Thus, PosSizers will be delivered in Version 5.6.

And now the logical follow up question:

When will 5.6 be available?

Wouter

Fidelity does not publish its ETA dates, but chances are it could happen somewhere close to the year-end.

Ok thanks for your swift replies.

Clear and bummer :-(

Perhaps you should reconsider this faq entry:

QUOTE:

Is it possible...?
The answer to this question is almost invariably, "yes". If "yes" is not the answer that you're looking for, then you didn't ask the right question!

Wouter

Well, it's not too long, and you may be sure that this functionality will appear.

Developer 5.5 is almost at the door and it will have the SetShareSize method to assign a fixed number of shares/contracts per position. Since you can already access the portfolio equity using a technique in this Wiki article, together with SetShareSize it will be possible to approximate decreasing position size before PosSizers.