This is a trading item or a component that was created using QuantShare by one of our members.
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This staggered entry money management strategy lets you enter a certain number of shares when the buy rule is met and the rest of the shares when the position increases by a specific percentage.
For example, we can define the following strategy:
Enter long 60% of shares when the stock crosses its 25-bar moving average. Buy the remaining 40% when the stock increases by more than 10% (The increase is based on the first buy price).
The number of shares to buy is calculated by QuantShare and it depends on the security price, the total number of positions allowed in the portfolio and the current capital.
The money management has 2 parameters:
Entry2 %: The percentage of shares to enter when the buy profit % is reached
Buy Profit %: Defines the percentage of increase from the first buy price
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.