Last updated on February 26, 2019 by Kornel Mazur
Settings – Money management
Money management (or position sizing) specifies how many lots or shares are traded on each trade.
StrategyQuant has flexible and extendable money management options that can be used in the program and later also in real trading in your trading platform.
Brief description of different money management types:
strategy will trade with fixed number of lots. This is recommended setting when you generate new strategy, because it gives you clear overview of strategy real performance.
strategy will risk a fixed amount of money for every trade. This is basic money management without compounding. It can be used to test real performance of strategies where Stop Loss is based on volatility (ATR), or if you want to compare the performance of strategies with different Stop Loss.
Risk fixed % of account
advanced money management that is recommended for real trading. The strategy will risk a given % of equity on every trade. This is simple, but very effective money management that will allow the strategy to increase number of lots as your account grows. It is generally recommended to risk maximum 2-5% of account equity per one trade.
Risk fixed % of balance
Like Risk fixed % of account, but it uses account balance instead of equity.
Account balance illustrates your closed trades Profit/Loss, while Equity is the real-time calculation of Profit/Loss, considering both open and closed. Positions.
Stocks size by price
This position sizing method is used especially used for stocks. Use account balance forces SQ to use the current account balance instead of the initial capital set.
Crypto size by price
Size computed as Balance / Asset Size. Position sizing method specifically for crypto trading – you have to specify the exact decimal numbers for rounding.
Simple Martingale MM
Position sizing that uses Martingale approach to increase positions after a loss.