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Ignore Orders for Recently Purshased Securities based on Return

by QuantShare, 3025 days ago
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By adding this money management to your trading system, you can prevent the backtester from purchasing any security that was previously bought in the past N days if its most recent return is lower than the specified threshold.

As an example, let us say that your trading system bought GOOG and AAPL and then sold them on 5 July 2015.
And let us also say that your money management inputs are as follow: Days=250 and Return=-10

If after few days (less than 250), your strategy generates a buy signal for GOOG and AAPL then any of these assets would be bought again only if its last performance is higher -10%.

You can also get a money management system that would prevent the backtester from buying any security that was previously bought in the past N days (not matter its return) by downloading the following item: Ignore Orders for Recently Sold Securities.


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Type: Advanced Money Management

Object ID: 1693


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Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.