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Hello,
I have question about ‘AutoTrade Scaling’ setting while configuring auto trade. Lets suppose I am following a trading strategy and the starting balance of the strategy was $5,000. Now after 2 years of trading & accumulating profits, strategy’s balance is $15,000 that is 3 times of the starting balance.
However I decided to deposit $30,000 to autotrade that strategy and my account deposit is 6 times of the starting balance of strategy.
Now my question is that if I set ‘AutoTrade Scaling’ to 100% then what would be my lotsize (or position size) while following that strategy?
Would my position size be the same as when strategy’s starting balance was $5,000 in the beginning?
Would my position size be 3 times of the strategy’s starting balance since now strategy’s trade balance has increased to $15,000 which is 3 times of the starting balance?
Would my position size be 6 times of the strategy’s starting balance since I have deposited $15,000 which is 6 times 6 times of strategy’s starting balance?
Thanks for your help in advance.
100% = you will trade the same lot size as the system regardless of the balance of your account or the system’s . Example : your autotrade scale is 100% then if the system buys 1 lot ES then your account will buy 1 lot ES , if the system buys 2 lots ES then your account will buy 2 lots ES … etc . Its a simple method , it has nothing to do with system’s balance or yours .
There are 2 balances which are different. One balance is in “Statistics”, the other which is lower is in the bubble that pops up in chart. Which balance do I use ??
I will answer your specific question in a moment, but before I do, let me suggest that the answer probably doesn’t matter. To quote from TSH, above:
He is right.
What he means is that, if you set your AutoTrade scaling to 100%, the quantity you AutoTrade will be the same quantity as the quantity traded in the C2 Model Account. If you set your Scaling to 200%, you will trade 2x the quantity. (E.G., if the system trades 5, you will trade 10.)
Notice how the Model Account size really doesn’t come into play in either of these cases. I mean, sure, you’ll want to understand that (to choose a random example) the strategy’s Model Account can “afford” to trade 100 shares of something, while you can only afford to trade 10 shares, but other than taking this very granular information into account, the Model Account size really doesn’t inform you much about the proper AutoTrade Scaling to use when you set up AutoTrading. It’s a decision that is up to you, and you’ll decide it based on the effective leverage you feel comfortable using.
All that being said… you can find the Model Account size before commissions and subscriber fees in the Stats section, and you can find the Model Account after commissions and sub fees in the big chart on the system page.
I fully understand what you are saying. The reason I need to know what balance to base my scaling on is because my account is below the value of the strategy I am following. If I follow at 100% I might get margin calls. If I follow at too low of scaling I won’t get a margin call, but I won’t make as much money as I could. I could go into more details… but I tend make long stories out of short ones ! So suffice I think you will understand what I am doing. That being said, the balance in the stats section is approximately 88k, while the chart is showing a balance of 80k. I need to know which balance to use so I can see how many percent my balance is below the strategy’s balance. If my balance was exactly the same, it’s a no brainer. Depending on which balance I use I am either a few percent lower or approximately 10% lower. Then I will be able to set my scaling percentage. Does that make sense ??
