Big change in performance between 10% and 80% of Equity

Author: goldenwaterox

Creation Date: 6/15/2011 7:08 PM

Wealth Lab » Wealth-Lab Developer/Pro » Big change in performance between 10% and 80% of Equity

goldenwaterox

6/15/2011 7:08 PM

Hi,

I am a complete newbie. I have been back-testing numerous strategies, and none of them make money. Then,after alot of tinkering around, I realized that my Position Size was not setup correctly in WealthLab.

For example,
Initially, the Position Size was 10% of Equity, and when I raised it to 80% of Equity, there was a big change in performance!

Does anyone have recommendations for Preferences and Position Size?

Thanks!

Eugene

6/16/2011 12:45 AM

A position size can not be "correct" or "incorrect" per se: it can be suggested by your risk- and money-management strategy.

Without judging how long an account would last with 4/5 of the money risked in a single trade, make sure you've read what the Wealth-Lab User Guide says about the technical side of things:

Strategy Window > Backtesting Strategies > 100% of Equity Sizing

Eugene

6/16/2011 1:12 AM

Please log in as "waterox". What happened to your original account registered last year?

No need to create duplicate usernames: even if you've forgotten your password in the 3 weeks since your last login, just click on "Forgot password?" on top of any page to reset it.