Buy with amount available from last sell
Author: novendeh
Creation Date: 1/20/2018 10:52 PM
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novendeh

#1
Is there any way of trading so I can buy a fiexed dollar amount, based on my last sell trade. For example:

Buy $100000 first trade
Sell $130000 second trade with profit
Buy $130000 third trade

When I try do do the last trade of $130,000, depending on what the market has done, I will skip a trade.

Or if I use margin, WL might try to by $135000 (depending what market did), but no missed trade.

I actually trade somewhat close to the approach outlined above, by buying let's say 90% close to open, 9% later in day 1, and then 1% even later.

I couldn't find anything close to this in position sizer.

Thanks.

EARL
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Eugene

#2
QUOTE:
Is there any way of trading so I can buy a fiexed dollar amount, based on my last sell trade

Isn't this the same as setting "percent equity = 100%"? If so you could apply one of these tricks to actually get WLP to make it:

FAQ > I'm using 100% Equity position sizing and strategy doesn't seem to use all capital and/or there are trades not included due to insufficient capital.
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novendeh

#3
Eugene - it is not the same and that's my problem. See following comments for monthly strategy I am testing

1. 100% equity, no margin - three trades missed.
2. 100% equity, 1.5 margin - no trades missed, but uses margin
3. 80% equity, no margin - no trades missed, but returns artificially low.

The links direct one in the user guide to this text. When I go to the User Guide > Strategy Window > Backtesting Strategies > 100% of Equity Sizing, it doesn't explain it very well, other than using margin or coding (which I would prefer not to do). I can't figure out how to do position sizing and make it work. Suggestions?

EARL
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Eugene

#4
QUOTE:
Suggestions?

There's nothing I can add to the Wiki FAQ, Earl. In conjunction with the User Guide it provides a sufficient explanation. To not use margin and to not skip (many) trades one has to follow the advice in the cited Wiki FAQ. If you have a specific question to this workaround, feel free to fire away.