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Jim Dean
 Elite
   Posts: 1059
Joined: 10/11/2012
Location: L'ville, GA
User Profile |
I suggested this very early in the V1 game ... both for modelling purposes, AND because (probably) the majority of traders will occasionally SPEND some of their earnings (or transfer it to other types of investments such as real estate, etc ... there should be an option to cap buying power.
Now that we have these huge compounded gains coming out of the PortWiz "super" models, this really would help in our evaluations.
That is, the account size can continue to grow, but the max available Buying Power is not allowed to grow past a certain point. This would effectively solve many issues in comparing strategies, forcing the trade sizes to remain in the realm of reasonableness.
In fact, an interesting simulation method would be to cap buying power at the INITIAL account size, and see how things work. That would put all the years in the simulation on the same playing field, and be a much better measure of Risk of Ruin.
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Steve2
 Elite
     Posts: 750
Joined: 10/11/2012
Location: Annapolis, MD
User Profile |
I second this. With the high performance portfolios we are able to create today, the right edge of long simulations is significantly impacted by the effects of enormous buying power. The user typically has to manually break a large simulation into multiple simulations to remove this effect. This capability would eliminate the need for users to go through this time consuming process.
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John W
 Elite
    Posts: 654
Joined: 10/11/2012
Location: Sydney, NSW, Australia
User Profile |
I second this too.
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Geoff
 Veteran
    Posts: 180
Joined: 12/4/2012
Location: Byron Bay NSW Australia
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Me too.
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DCGSyd
 Member
Posts: 6
Joined: 2/28/2013
Location: Roseville, NSW, Australia
User Profile |
Yes cap please
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BarryM
 Member
Posts: 12
Joined: 9/25/2013
Location: Edinburg, TX
User Profile |
This would be a GREAT feature.
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