July 18, 2007
How to make Suggestions and ask Questions
If at all possible ask your questions in a comment to a closely related post, that way it will be read by someone who knows the topic and who is most likely able to answer your question. Note that some categories have introductory posts that are especially created to provide you with an easy way to ask questions. If you cannot find a related topic you can ask your question in a comment to this post.
Please use the same method when suggesting new topics or categories. If no related topics can be found you can suggest your topic in a comment to this post.
Filed by Herman at 11:28 pm under Readers
5 Comments
Hello,
i would like to see how a risk management can be implemented. Even a risk management that not only calculates the number of contracts at trade entry but also calculates current risk at every bar and reduces the number of contracts if necessary.
So we should have the option to define the risk amount like Close – StopPrice for every bar and the CBI should calculate the actual risk at every bar and scale out contracts when the trade risk is higher than x%. It would be perfectly when we could check the risk at every trade and also at the complete portfolio and scale out according to the trade and/or portfolio risk.
I have followed a thread in the forum from another guy who wasn’t able to solve it and hasn’t got any further help, probably because no one knows how to solve it. I fully agree with the other guy that it is very important to have a risk management. Currently probably all of us are trading without a real risk management. Just making the decision about the contract number at trade entry isn’t a real risk management. So I think all users would highly benefit from it.
Ok, hopefully someone is experienced enough with the CBI to write it.
Hello Thomas,
I am definitely no expert in Risk Management but I consider it a complex topic that is more likely to be covered in a book than on a site like this. We could create a category for RM however I think I’ll wait until someone comes forward on this topic.
Hello Herman,
I agree, it’s a more complex topic, please add a category. Sure, a book would be good, but i assume AmiBroker customers want to use it without reading a book and a book would take a lot of time until it could be available. It’s good to know the background, but it is not necessary. I think we could start with a basic risk management as described above. This way everyone could simply put it to the CBI and only need to define the stop amount for long and short and the percentage amount of maximum risk.
As i have read in the forum the code from the other guy doesn’t need a lot of modifications to finish it.
Tomasz wrote, that the guy is on the right way and that only all or at least two variables of his code must be made dynamic. I have tried it myself without success, but maybe one who is more familiar with the CBI can do it. I try to help as good as i can to develope the Risk Management.
Maybe anytime Tomasz writes a function that allows us easily to access CurrentTradeRisk(), CurrentPortfolioRisk(), CurrentSectorRisk(), CurrentIndustryRisk(), etc…
So we could simply write: if(CurrentPortfolioRisk() > 0.04) then…
Ok, just a dream. :-)
Hello Herman,
have you considered to open such a category for RM ?
Hello Thomas,
We can create any number of categories. However, we already have a number of empty categories waiting for contributions and I hesitate to make more at this time. RM is not a topic I can write on…