Hello,

it is possible to have a short and a long entry within a strategy. It is also possible to have several long entries and several short entries within one strategy.

I assume that the position priority will then decide which trade should be done, should there not be enough capital for all of them, right?

My question now is: This position priority does also decide if a long or a short trade will be executed if there is not enough capital for both of them available. Correct?

What about capital allocation: Do the long and short trades share the same capital or is it like with the Combination strategy, that each of them will have their "own capital"?

Thank you very much for your help!
Werner

Hi Werner,

The long and short trades share the same capital and are a Position.Priority is applied to shorts by WL just as to longs.

Thank you, Eugene!

And this Priority is the only criteria which decides if a long or a short trade will be done - if signals for both are there, but the capital is only enough to carry out one of them. Correct?

Werner

Hi Werner,
You are correct. The backtest will process the position with the highest priority first. Once that position is processed and removes buying power, there will be less buying power for positions with lesser priority.