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                                                   "Combine Trading Systems" tool Question

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Vangelis M.
2012-08-06 01:18:52


Hello,

The "Combine Trading System" tool is very useful and easy to use. Thank you for providing it.
Could you clarify the logic of how the system's equities are combined?
Are the Equity curves added? Is the final Equity compounded profits?

Specifically, assuming 30000 initial investment and 3 strategies, is the logic similar to :

a. trading 3 strategies with 10,000 each and reinvesting (compounding) in each independently.
b. trading 3 strategies with 1/3 of total equity each and reinvesting on total combined equity.

I assume it's a. Just want to clarify it.

Thank you.



QuantShare
2012-08-06 15:53:17

  1

Best Answer
Hi,

The logic is similar to the first option (a).




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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.