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#: '''Exposure''' is defined as follows: entry price * number of contracts. This is the definition for both long and short positions.
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Portfolio settings define the conditions under which the strategy is executed. Portfolio Settings include '''Exposure''', '''Max % of Capital at Risk per Position''', '''Initial Portfolio Capital''', '''Margin per Contract''' and '''Potential Loss per Contract'''.
Portfolio Settings can be set from the '''Portfolio Settings''' tab in Portfolio Backtester Trader application. * Open '''Portfolio Trader''' window.** see '''[[Portfolio Trader#Opening Portfolio Trader|how]]'''.
To use the Portfolio Settings tab:
# In the '''Exposure''' box, enter the maximum percentage of capital to be exposed to risk.
#: For example, with '''Exposure''' set to 50%, a maximum of 50% of the capital will be available for the sum of all positions. If an additional position causes total exposure to exceed 50%, the position size will be reduced so that the '''Exposure''' limit is not exceeded.
# In the '''Max % of Capital at Risk per Position''' box, enter the maximum percentage of capital that can be risked per position.
#: 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''' is defined as follows: entry price * number of shares. This is cannot exceed the definition for both long and short positions'''Exposure''' setting.</div>#: <br><div style="background-color: #E3FBE5E5F6FF;">Note'''Example 1''': '''Max % of Capital at Risk per Position''' cannot exceed 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'''Exposure, 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''' settingallows 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>
#* 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 Backtester Trader enables the user to calculate the margin values and change portfolio settings dynamically with PowerLanguage.
For more information, please see PowerLanguage portfolio-related keywords (prefixed with the word "Portfolio").
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[[Category:Portfolio BacktesterTrading]]
