day five, oh feck, oh feck, oh feck
index down 30% from entry, positions closed at close.....
underlining position value $55K less, say, $16.5K (30%) = $38.5K
account balance on exit = $8.5K
loss of $21.5K (71.6%) of account value in 5 days
maybe this is a conservative estimate of the possible losses as the 10 stocks traded may have been more volatile than the index its self.. may be a $30K (100% account size) loss in 5days?.. may be more.. may be I have to give more money to my broker?
belflan
index down 30% from entry, positions closed at close.....
underlining position value $55K less, say, $16.5K (30%) = $38.5K
account balance on exit = $8.5K
loss of $21.5K (71.6%) of account value in 5 days
maybe this is a conservative estimate of the possible losses as the 10 stocks traded may have been more volatile than the index its self.. may be a $30K (100% account size) loss in 5days?.. may be more.. may be I have to give more money to my broker?
belflan
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BelflanI don't know if you introduced this thread in another thread, but would you mind stating the purpose of this thread. I can see that you are "back-testing" a portfolio strategy, but what exactly are you trying to test and what do you hope to get out of it ? I just wanted to know the context, so that I can follow your thread better.Charlton
hi Charlton,
what i'm thinking here is that soon (within the next 4-6 months) I'm going to be putting my own hard earned cash on the line..
in this thread i want to look at what the worst case is within the different strats I may use.. what might happen if all goes wrong if you like.. I want to hope for the best, but be prepared for the worst.. what's the risk
cheers
belflan
I believe my largest intra trade, intra day trading draw down was on day 15. I was short AAPL, RIMM and AMZN at the same time and they run against me approx $2,200 in total. My position sizing was as follows
AAPL = 426
RIMM = 474
AMZN = 703
I believe my scalping has move on quite a bit since then (within a short period of time), and I do not believe I would allow myself to get into this position again. However I'm trying to look a worst case situations on this thread.. so I run with this..
so what if I was postioned as above (positions also running against me as above) and AAPL, RIMM and AMZN all spike sharply against me.
what I need to know is what is the largest 1min bar that AAPL, RIMM and AMZN have produced? I'll have a look at the data I have..
belflan
AAPL = 426
RIMM = 474
AMZN = 703
I believe my scalping has move on quite a bit since then (within a short period of time), and I do not believe I would allow myself to get into this position again. However I'm trying to look a worst case situations on this thread.. so I run with this..
so what if I was postioned as above (positions also running against me as above) and AAPL, RIMM and AMZN all spike sharply against me.
what I need to know is what is the largest 1min bar that AAPL, RIMM and AMZN have produced? I'll have a look at the data I have..
belflan
so having a quick look back at AAPL's, RIMM's and AMZN's resent past. you could get a 1-2min spike against you of AAPL $1-$1.5 RIMM $1-$1.25 and AMZN $.75
If these spikes all happen at the same time while i was in the above positions I would be running a lost of around $4K
belflan