Abbreviation: RequiredAccountSizeShort
Category: Trading Strategy: System Information
Input Parameters:
| Name | Range | Default |
| Trading Strategy | ||
Calculation:
If a margin per contract has been selected for the trading strategy, then
Required Account Size for Short Trades = (Maximum Drawdown) + (Margin Per Contract) * (Largest Short Contracts Traded)
If no margin per contract has been selected, then
Required Account Size for Short Trades = largest previous Short Entry Cost
where
Short Entry Cost = (number of shares traded) * (entry price) – (Net Short Profit prior to trade entry).
Note that the entry price incorporates any specified slippage and/or point value.
Discussion:
Computes the amount of money you would have needed in your account to trade the trading strategy given all the previous short trades. When graphed, provides a useful means of analyzing, troubleshooting and improving a trading strategy.