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. | |
