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== Understanding Dynamic Portfolio ==
A dynamic portfolio strategy is more then than simply a collection of separate strategies, and must take in to into account a number of additional factors:
* Capital limits
Batch Portfolio Backtesting, also known as Basket Backtesting, evaluates each strategy separately and then compiles the results.
True Dynamic Portfolio Backtesting simulates the actions of a real trader by taking in to into account the overall portfolio considerations dynamically, during the evaluation of each bar.
Portfolio equity and the available capital are dynamically evaluated for every instrument, on every bar, in order to determine the amount available to be invested.
When available capital is insufficient to enter all of the 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 in to into consideration when making entry and exit decisions.
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