I’m thinking of rescaling my system. I want to set a higher net return goal and am thinking using less capital might be more realistic. Will rescaling my system down ruin my results?
I know when I use the personalized equity that it doesn’t display properly because I had some stock trades.
Perhaps I will just add more contracts or start a new system.
Rescaling is perfectly fine and will not adversely affect anything.
Mathew, when I view my system under personalized equity curve. Let’s say I bought 1 contract and I want to see how it would look if I had a starting balance of 15k then that works okay. But instead of I bought 1,000 SPY shares a proxy, it just makes my position smaller which doesn’t show the true performance gain. I’m assuming.
I guess that makes sense but it makes my system look worse when personalized then it should, at least in those cases where I was using the SPY as a proxy.
To be clear, my system has made around $10,000 in profits with a max drawdown of $7,000. If I had use leverage at $25,000 then this should be $35,000/$25,000 for a 40% gain with a max drawdown of 28%. Not bad at all!
If I had traded only futures contracts I’m assuming the personalized equity curve would reflect that but with stocks, it just makes the position smaller.
Let me correct, I think you are doing it correctly. I just can’t see the full effect on leverage for my first trades when I used spy proxy.
oh well
