Why is WLP using more cash than available with 100% Equity sizing?
Author: 123blee9
Creation Date: 7/3/2017 6:39 PM
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123blee9

#1

Below are data from the trade tab for a given strategy and single stock.
I'm using 100% position sizing with no leverage.

Open orders are limit orders, so it makes since that when price opens on occasion below the entry limit price, idle cash is produced. Idle cash should never be negative under these assumptions, as the order fills at the limit price or better.

Why is WLP using more cash than is available to make trades?


Thanks,

Brian
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Eugene

#2
Hi Brian,

1. Prior to trade #16, what was your Equity[bar] value?
2. Are dividends applied (Preferences > Backtest settings) and was there possibly a dividend payment?
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123blee9

#3
You have an eagle-eye Eugene. The Equity curve value prior to the row 16 trade was the spreadsheet equity value less the dividend paid. That also explains the stair-step nature of the chart.

Thanks !
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Eugene

#4
Brian,

Glad to have helped. Happy 4th of July!