Initial Portfolio Capital  [SOLVED]

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ilag
Posts: 9
Joined: 23 Nov 2017

Initial Portfolio Capital

Postby ilag » 15 Jan 2018

Hi everybody,

Currently working with Portfolio Trader. When backtesting a portfolio I have realised that the Initial Portfolio Capital value seems that is not working properly (current investment capital in open trades higher than initial portfolio capital).
In order to check it, I have created a portfolio containing only 2 instruments and a basic signal that buys a fixed $ amount ($70.000).
Initial Portfolio Capital is set to $100.000
However, when backtesting, a long $70.000 position is open in both instruments that means a $140.000 investment (I am supposed to have only $100.000)

The behaviour I would expect would be a long position of $70.000 for the first instrument and a long position of only $30.000 for the second if the Initial Portfolio Capital worked fine.
Is initial portfolio capital working ok or am I missing something?
I have read a very interesting topic on this (05/October/2017 by trader0311) but, unfortunately, there is no conclusion out of it.

Thanks!

Zheka
Posts: 224
Joined: 13 Jan 2016
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Re: Initial Portfolio Capital

Postby Zheka » 15 Jan 2018

Hi,

this might be governed by the "Margin value [ ]% of contract cost".
try playing with it (e.g. set it to100)

ilag
Posts: 9
Joined: 23 Nov 2017

Re: Initial Portfolio Capital  [SOLVED]

Postby ilag » 16 Jan 2018

Thanks Zheka.
Works fine if you set "Margin values of contract cost" to 100%


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