Portfolio available cash for stock investing

Questions about MultiCharts and user contributed studies.
ilag
Posts: 9
Joined: 23 Nov 2017

Portfolio available cash for stock investing

Postby ilag » 17 Jul 2018

Hi everybody,

Please, review the following actual example to illustrate the logic I do not understand:

Portfolio Initial Capital: $5.000
5 open trades (stocks) investing $1.000 each

Suppose that currently Portfolio Equity is $6.000 ($1.000 open profit) and we have a new stock opportunity. My logic would tell me that I can not invest in this stock unless I close on of the 5 open trades. However, it seems that Portfolio Trader invest $1.000 in this stock. The logic confuses me as I do not have this $1.000 in my account (all my $5.000 are invested in 5 open trades !!).

Is it possible that the extra $1.000 comes from the open profit? But this is not real cash...

Could anybody clarify the logic? In my view, you could only invest the actual cash you have in your account. Not open profits...

Thanks!

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Anna MultiCharts
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Re: Portfolio available cash for stock investing

Postby Anna MultiCharts » 18 Jul 2018

Hello, ilag!

Please send us your portfolio workspace and the export of data in QMD for the symbols used in it to support@multicharts.com for analysis.
https://www.multicharts.com/trading-sof ... rting_Data

Zheka
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Re: Portfolio available cash for stock investing

Postby Zheka » 19 Jul 2018

Technically, a broker would allow opening a new position if you have sufficient equity - at that moment - to cover the margin.
To only base your sizing decisions on closed equity, you need to explicitly code this around.
You can also play with PortfolioTrader Portfolio Settings (Exposure, Required Capital Assumptions) to achieve what you need.


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