Does hypothetical performance consider margin requirements?

I like some rather risky strategies (like honey growth) that sell vol. Selling vol is a pretty risky proposition and I am not sure if C2 Hypothetical Performance chart ensures if a strategy might have gone bust due to margin requirements? I see maximum drawdown, but that’s per trade, there’s no portfolio drawdown, so I can’t be sure if the strategy would have survived in an actual trading environment.

For instance, Interactive Brokers requires you to have:
Call Price + Maximum ((20% 2 * Underlying Price - Out of the Money Amount),
(10% * Underlying Price))

Is this enforced in hypothetical portfolios?

Yes, we check margin requirements with regards to the Model Account.

1 Like