How do I use margin. - Wealth Lab Forum

How do I use margin.

Author: annina72

Creation Date: 4/28/2011 1:58 PM

Wealth Lab » Wealth-Lab Developer/Pro » How do I use margin.

annina72

4/28/2011 1:58 PM

I use a simple channel breakout strategy with the risk of 5%.
I need to use margin.
I'm trying to set a different level of margins - 1, 2, 3, 4, 5.
But the results do not differ.
Always computed as a factor Margin = 1.
What should I do?

Best Regards,
Rauf ERK

Cone

4/28/2011 3:44 PM

Give a specific example. How are you determining that Margin is not being used? Surely you can see the effect in the Buy and Hold results.

Eugene

4/28/2011 3:52 PM

He might be trying to use Margin Factor with Futures symbols (N/A by design).

annina72

4/29/2011 12:24 PM

Hi Friends!
I use a simple channel breakout strategy from rules with a 20% risk, for example.
Buy at stop channel high (60)
Sell ??at stop channel low (20)
Trying out for AA (ALCOA INC. COMMON) Daily from DOW30.
Capital is $ 1,000,000.
Margin Factor is equal to 9.
In the first transaction system would buy 753 580 shares
but bought only 434 034 (100% equity).
Margin is not used. Why? :-(

What can I do to activate the margin?
Thanks in advance!
:-)
Rauf Erk

Cone

4/29/2011 2:38 PM

100% of Equity is cash. If you want 9x margin, then you need to enter 900%. Note that with 1:1, you cannot specify more than 100%, likewise with 9:1 you can't specify more than 900%.