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Money Management Settings during Development & Robustness Tests

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Ilya

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5 years ago #235260

Hi, I wanted to confront and ask your opinion and workflow regarding the money management setting during development and in robustness testing.

For development, I know Zdenek recommends (and most of you guys use it) to use “fixed lots” or “fixed amount” to see the system perform comparable trades. But since practically all traders use % account risk in real trading, do some of you use that setting in development too? and if not, when would you make that switch of MM?

I mean, after your strategies bank has been moved to retester, do you keep testing your robustness tests, more precise test data (ticks), different timeframes/markets etc with the original MM (Fixed lot/amount) or you change it now to % account risk which will represent your actual future results? Or do you change it only when you move the strategy to live trading? Or maybe you make that switch when using the Analyzer after the strategy is more or less ready?

 

Some testing I did revealed that a few very good “on paper” strategies that I found, failed MC with the original “fixed amount” I use in development, BUT when I switched MM to % account risk (1%), MC passed nicely (for the most part). That’s what made me thinking..

I’ll be happy to understand the best way to navigate the MM topic during development, robustness testing & live trading.

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