New Features in TradeSim

On May 31, 2002 several new features were added to TradeSim

• User definable risk .
• Win Runs and Loss runs charts.
• User Risk table and chart.
• A user risk file creation tool.
• Drawdown in either percent or absolute units.

The various risk strategies can be represented as a curve of risk as a function of equity. As risk strategies are chosen TradeSim creates a user risk chart that shows the risk curve for the entries chosen. For a change in the start equity, minimum equity or any of the parameters connected with the three risk modes, a new risk curve is created.

Here are some sample risk curves. There is a short vertical marker at the starting equity to visually locate it on the curve. It is just a marker and not part of the curve. First a 3% of equity per trade risk with starting equity of $10,000 and minimum equity of $4,000.

Next a starting risk of 1 unit (2 S&P e-minis in this case) increasing by 0.5 (1 additional contract) for each $2,500 increase in equity. Minimum equity is $2,000 and starting equity is $6,000.

Risk curves are created either by editing a risk text file or using a risk curve creation tool which quickly builds risk curves like the one above.

Here is a comparison of the profit for the two curves shown above. the bottom is for a risk of 1 (2 e-minis) and the top is for the second risk curve which adds one more contract for each additional $2,500 of profit.

Home

The charts on this page are produced using the TradeSim software.

Copyright 2002, Larry Sanders

Last update 2002.05.31