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#: For example, with '''Max % of Capital at Risk per Position''' set to 5%, a maximum of 5% of the capital will be available for a single position. If an additional position risks more than 5% of capital, then the position size will be reduced so that the '''Max % of Capital at Risk per Position''' limit is not exceeded.
#: <div style="background-color: #E3FBE5;">'''Note''': '''Max % of Capital at Risk per Position''' cannot exceed the '''Exposure''' setting.</div>
#: <div style="background-color: #E5F6FF;">'''Example 1''': '''Max % of Capital at Risk per Position''' is calculated based on equity, that is a % of (initial capital value + profit/loss of the closed trades). It is a general setting for the whole portfolio of symbols and strategies that limits the amount of your position.<br>If '''Max % of Capital at Risk per Position''' allows you to buy 50 contracts only, while you are supposed to buy 100 contracts according to '''Trade Size''', your strategy will buy only 50 contracts.<br>If according to '''Trade Size''', you are supposed to buy 50 contracts, but '''Max % of Capital at Risk per Position''' allows you to buy 100 contracts, , your strategy will buy only 50 contracts.</div>
# In the '''Initial Portfolio Capital''' box, enter the amount of the initial trading capital.
# In the '''Required Capital Assumptions in Margin Trading''' section, choose to use either '''Margin per Contract''' settings or '''Potential Loss per Contract''' settings.<br>
#: <br><div style="background-color: #E3FBE5;">Note: Do not use both.</div>
# In the '''Financial Settings''' section, set appropriate properties which will be used in portfolio performance calculation.
#: '''No. of standard deviations''' - the number of standard deviations is used in some report indices calculation. The default is 1.
#: '''Minimal acceptable rate of return''' - reference point for Sortino Ratio (See "Performance Ratios" section in Portfolio Performance Report).
#: '''Degree of risk aversion of the investor''' - reference point for Fouse Ratio (See "Performance Ratios" section in Portfolio Performance Report).
#: '''Interest Rate''' - the interest rate to be used in the performance ratio calculations.
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#* Select '''Absolute Margin value (from QuoteManager symbol settings) ''' to get the margin value from QuoteManager. Each symbol has a margin setting in QuoteManager. If no margin setting was entered in the QuoteManager symbol settings, then the margin value is assumed to be zero, or
#* Select the '''Margin value % of contract cost radio button''' to enter a margin percentage that will be applied to all contrats.
# In the '''Potential Loss per Contract''' section, input “0.001” “0” into the '''Absolute Max Potential Loss''' box. This effectively disables the '''Potential Loss per Contract''' section.
<br><div style="background-color: #E3FBE5;">Note: Only the initial margin will be taken into consideration. The maintenance margin will not be taken into consideration.</div>
# In the '''Margin per Contract''' section, set '''Margin value % of contract cost''' to "0". This effectively disables the '''Margin per Contract''' section.
In real trading, margin values and other portfolio settings may change depending on the circumstances. Portfolio Trader enables the user to calculate the margin values and change portfolio settings dynamically with PowerLanguage: https://www.multicharts.com/trading-software/index.php/Category:Portfolio_Strategy_Position.
For more information, please see PowerLanguage portfolio-related keywords (prefixed with the word "Portfolio").
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[[Category:Portfolio BacktesterTrading]]