Trading the Equity Curve

While backtesting a portfolio or trading system, trading signals and position sizing rules are defined at startup and cannot be changed or updated dynamically during the backtesting process. The money management tool allows you to create scripts for different events that are executed during the backtesting and therefore it allows you to interact and dynamically update portfolio settings and rules.

This money management script, for example, tracks the performance of the portfolio for the previous year (from the equity curve) and reduces the exposure and the maximum number of positions in the portfolio when the performance metric drops below zero. The active positions are scaled using a market-at-open order, which means that a scale-out order (Sell 50%) is generated for each position of your portfolio.

When the portfolio gain becomes positive (One year rate of return of the equity curve is higher than zero), the default portfolio settings are restored (100% of money invested and the original number of position is set).

Here are some other examples of money management scripts:
Capital Allocation based on the Expected Market Volatility (VIX)
Money management to Reject Trading Positions Based on their Past Performance
Adaptive Trading System - Percent Winning Trades for the Last N-Days
Adaptive Trading System - Minimum Percent Winners and Percent Invested

The different strategy settings (Portfolio equity curve performance, exposure and number of positions) can be optimized using the "Optimize" variable of the "OnStartSimulation" event of the money management script.
For more info, read this post:
Money Management: Optimize a trading system

Technical Analysis

• Stock Bounces off its Previous Resistance or Support Line
• Scale-In On Price Drop
• Pivot Point Breakout Scanner
• Crossover/Convergence of Several Trading indicators
• DV Bounded - DV2/DVB
• Enhanced Candlestick Chart with Volume Variation
• Choose function
• Rate of Change Volume
• Anchored Indicator
• Fixed Risk per Trade - Position Sizing
• More trading objects...

Fundamental Analysis

• Penny Stock News Picks
• Commitments of Traders - Historical Data
• Short selling indicator
• Price to Book Ratio Historical Data - Market to Book
• Fails to deliver
• Splits Calendar - Historical data for U.S. Stocks
• iShares ETFs - Class, Total Net Assets, Inception Date and Number/Top Holdings
• NASDAQ and Boston stock exchanges - Daily short sale data
• Historical Earnings Calendar Data for U.S. Stocks - Date/Time and EPS
• Euronext Paris - News Data
• More trading objects...