Any way to double down on a trade in backtesting?

Questions directed to our Support Team. Responses can be expected within 24 hours.

Any way to double down on a trade in backtesting?

Postby Kevin_in_GA » Mon Dec 31, 2012 6:16 pm

If I am in a trade and it drops 10% is there a way to double down on it - rather like a stop loss but instead have it execute a second buy of the same dollar value as the initial trade? If not please consider implementing something like this in a future update.
Kevin_in_GA
 
Posts: 171
Joined: Wed Aug 04, 2010 10:14 am

Re: Any way to double down on a trade in backtesting?

Postby Overload » Mon Dec 31, 2012 8:38 pm

There isn't a specific feature for that, although it is actually on the list from a prior request.

But, depending on the strategy, I have had some success doing this by using a Multi-System that contains a second strategy that triggers only the double-down portion. In a nutshell, your trigger is one strategy and your double-down is a second strategy in the multi-system. You'll also need to check the box to "Allow Multiple Purchase of Symbols Across Systems" for your Multi-System, so that the same symbol can be bought twice. And you'll need to evaluate a Portfolio Size that is as much as double the size of your underlying trades. So basically the double-down is counted as an independent trade rather than an extension of the base trade.

Again, this can only be done in some cases depending on the complexity of the strategy, so it is not a perfect solution. And it does take some additional programming, but it might be a helpful tool in some cases.

Pete
Overload
 
Posts: 2248
Joined: Wed Nov 30, 2005 12:14 pm

Re: Any way to double down on a trade in backtesting?

Postby taowave » Tue Jan 01, 2013 1:05 pm

It would be great if you could add some position sizing algos in the future.

Allan
taowave
 
Posts: 584
Joined: Sat Dec 02, 2006 12:39 pm

Re: Any way to double down on a trade in backtesting?

Postby Dacamic » Thu Jan 17, 2013 12:17 pm

I've not yet figured out how to get variable position sizing to fit properly into the mechanical trading world. Maybe that's because I'm biased toward thinking it is a tool used primarily by discretionary traders.
Steve
Dacamic
 
Posts: 457
Joined: Wed Nov 30, 2005 12:40 pm


Return to Technical Support

cron