Account Size Required: Long Trades

Abbreviation: RequiredAccountSizeLong
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 Long Trades = (Maximum Drawdown) + (Margin Per Contract) * (Largest Long Contracts Traded) 

If no margin per contract has been selected, then

Required Account Size for Long Trades = largest previous Long Entry Cost 

where  

Long Entry Cost = (number of shares traded) * (entry price) – (Net Long 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 long trades. When graphed, provides a useful means of analyzing, troubleshooting and improving a trading strategy.
 

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