Hello,

If i have a system with maybe max 2 Positions(50% equity each) and 1 position is open at the moment with a huge profit .Lets say we started with 100 000$ and the open Position has a Profit of 900 000$ so my equity is now 1 000 000$ and i get a signal for a additional Position.

What does wealth lab if that happens?

Theoretically it should open a new position with 500 000$ equity but thats not possible because most of the money is in the open position.

best regards

tobias

That's how it would work for the basic Position % of Equity sizing. The question is, "How do you want it to work?"

If you always want to use 50% of $100K starting equity, then you can use the "Position Options" PosSizer and enable the "Don't Reinvest" button.

Install the MS123 PosSizer extension, if required.

thank you for your answer.

So in real trading i should have money left(more than the starting capital) to replicate the wealth lab results with the basic % of equity sizing mode?

QUOTE:
Theoretically it should open a new position with 500 000$ equity but thats not possible because most of the money is in the open position.

Here you correctly described how the basic % of equity sizing mode would work - you wouldn't be able to put on a new position because you'd need $500K of cash (assuming no margin).

If you want to always size new positions with 50% of the starting equity, $50K in this case, you need to use the Position Options Pos Sizer and enable the "Don't Reinvest" button. If you do that, then you would always get alerts that are sized for approximately $50K, and you'd be able to put on a new position in the scenario you described.

ok thank you now i understand ,so wealth lab just invests in new stocks if there is enough free equity(no margin) for the new position .

Right, although I'd say: Wealth-Lab can add a new position if there's enough buying power, which includes the margin setting.

For more info, be sure to see the User Guide topics:

Reference > Data Panel > Position Size Control > Portfolio Simulation Mode > Margin Factor
Strategy Window > Backtesting Strategies > 100% of Equity Sizing
Strategy Window > Backtesting Strategies > How Trades Are Chosen