This Simulation Mode doesn't performs a Portfolio Simulation. It is designed to obtain information about the raw potential of a Trading System. You can specify a fixed money amount or a fixed amount of shares or contracts for each trade and you will obtain metrics about the Trading System as if every raw trade generated was executed. This enables you to compare the raw profit potential between several Trading Systems.

 

When using this simulation mode, the Starting Capital and Allocation concepts are meaningless because all the trades will be executed as if the Capital was infinite.

 

The only Position Sizing methods available when using the Raw Profit Mode are:

 

Fixed Shares Position Sizer.

With this Position Sizer, each position will have the same number of shares / contracts. This Position Sizer may lead to distorted results that causes that different Trading Systems can't be meaningfully compared.

 

 

Fixed Amount Position Sizer:

This Position Sizer allocates the same amount of money to each position. Then the amount of shares / contracts is calculated taking into account the money amount allocated to the position. For example, if a stock is trading for $1000/share, then you must specify at least a value of 1000 in order to purchase 1 share.

 

In the case of stocks, the number of shares to purchase is calculated by dividing the selected amount by the position's basis price. In the case of Futures, the number of contracts to purchase is calculated by dividing the selected amount by the instrument's initial margin.

 

 

Please, see: Allocation and Position Sizing