Portfolio Trader

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Portfolio Trading functionality has been added in MultiCharts 9.0 Beta. In MultiCharts 9.0 Portfolio Backtester has been improved and became Portfolio Trader with forward testing and real-time dynamic portfolio trading capabilities.

Portfolio Trader Manual in .pdf format can be downloaded here

Understanding Portfolio Trader

MultiCharts now offers real-time portfolio trading, allowing you not only to backtest your strategy on a number of financial instruments, but also manage your portfolio live. While other platforms provide only historical simulations of portfolio trading, in MultiCharts Portfolio Trader you can develop, test, optimize your strategy and trade live or in simulation environment.

Portfolio Trading Benefits

  • Applying a trade strategy to a number of financial instruments simultaneously offers the following advantages:
  • A diverse portfolio will produce more consistent results
  • Infrequent trading opportunities will be more common across a number of symbols
  • Portfolio strategies can maximize profit and minimize risks by dynamically allocating a portfolio’s capital based on each instrument’s performance
  • Portfolio strategies can enter, scale-in, scale-out, or exit positions based on the portfolio’s overall performance
  • Portfolio strategies are generally more robust and less susceptible to over-optimization
  • By backtesting on a diverse portfolio, instruments best suitable for that particular trading strategy can be selected.

Portfolio Trader Calculation Modes

1. Backtesting.
After calculating strategies based on historical data, the Portfolio Performance Report will be generated.

2. Forward Testing.
After calculating strategies based on historical data, this calculation is continued on real-time data. Information about the results is shown on the Forward Performance Testing window.

The Forward Performance Testing window contains the main information on strategy performance for every instrument:

  • Instrument – name of the instrument;
  • Position – current market position of the instrument;
  • Open P/L – open position profit/loss of the instrument;
  • Net Profit – net profit of the instrument;
  • Risk Capital - amount invested into the current position;
  • Equity - current equity of the instrument (Net Profit + Open P/L);
  • Custom Text - a text line generated by a signal (pmm_set_my_status) or PMM signal (pmms_strategies_set_status_for_all);
  • Pause/Resume Trading Instrument button - allows the user to pause/resume order generation for the selected instrument;
  • Close Position instrument button - allows the user to close the position for the selected instrument.

Forw Perf Test.png

Performance Graph gives a visual representation of portfolio performance. The following values are shown:

  • Initial Capital
  • Net Profit
  • Equity
  • Buying Power

Perf Graph.png

Portfolio Performance Report is available in Forward Testing Mode. Portfolio Performance Report shows the results generated from the moment it opens. The Portfolio Performance Report can be recalculated automatically on every new order generation if the Recalculate the Report on each new order check box is checked:

Port Perf Report.png

3. Automated Trading.
After calculating the strategies based on historical data, the calculation is continued on real-time data, and orders are sent to the broker; for each strategy a separate broker profile can be selected.

Portf RT AT.png

Note: When Auto Trading is used, the Strategy header is colored green.

Order and Position Tracker Window contains detailed information on accounts, orders and positions at the broker.


Portfolio Performance Report is available in Auto Trading Mode. A Portfolio Performance Report shows results generated from the moment it opens.

Understanding Dynamic Portfolio

A dynamic portfolio strategy is more than a simple set of strategies applied to a number of instruments, taking into account a number of additional factors:

  • Capital limits.
  • Priority of Entry orders.
  • Money and risk management.
  • Overall portfolio exposure.

Batch Portfolio Backtesting, also known as Basket Backtesting, evaluates the performance of the strategy applied separately to each instrument and then compiles the results. It produces completely inaccurate results when the strategy needs to take into account overall portfolio exposure.

True Dynamic Portfolio Backtesting simulates the actions of a real trader by dynamically taking into account the portfolio’s overall results, rather than basked trading which simply compiles each instrument’s performance. Portfolio equity and the available capital are dynamically evaluated for every instrument, on every bar, in order to determine the available amount to be invested.

When the available capital is insufficient to enter all trading opportunities that arise simultaneously, the best opportunities are selected according to user-customizable criteria.

In addition to the performance of a particular instrument, portfolio drawdown or other portfolio performance aspects can be taken into consideration when making entry and exit decisions.

Portfolio Script Calculation Diagram

To see Portfolio Script Calculation Diagram please click here

Portfolio Trader Strategy Examples for regular MultiCharts (PowerLanguage) can be downloaded here