Mark Holstius Elite    Posts: 744 Joined: 10/11/2012 Location: Sleepy Hollow, IL  User Profile | The 60% limit was there to cause the original Low Risk RTM-ETF Portfolios to take 2 different size trades when 2 Strategies traded at the same time using the same symbol. In a Margin Account (BP 190%) the first trade would be 20% of the available Trading $ (20% of $200,000 = $40,000) and the 2nd would be 10% (10% of $200,000 = $20,000). The Max Exposure is based on the original equity ($100,000), so it had to be doubled to 60% to correctly use the 2X Margin. Problem is, if you change the Margin then you have to change that Max % in the same proportion - so it makes it more difficult than I was trying to do. I want this Portfolio to easily adapt to everyone's desires for Margin, % Allocation, and use in an IRA - so I made the decision to drop that setting. i.e. See my "Portfolio Settings Calculations Spreadsheet" post at: http://www.omnitrader.com/currentclients/omnivestforum/thread-view.asp?threadid=7742&posts=3 It now takes the 2nd trade at a % equal to the 1st. Sometimes that hurts, but statistically over time it helps. You can see the effect by simply changing the Max Strategies from 2 to 1. If trading 2 was a net negative, things would be better using 1. Also, you previously asked about the days to a new high (length of a DD), and today I was able to get a limited version of my extensive analysis spreadsheet working... So, here's a comparison of the Margin Low-Risk RTM-ETF and the newer Flexible By Design as far as DD statistics; With the Flexible By Design Portfolio the time in a DD: Avg is 1 day shorter 95% of the time it's 4-5 days shorter The Max is 25 days shorter Hope that helps, Mark [Edited by Mark Holstius on 8/4/2016 7:37 PM]  Attached file : Flexible vs Low Risk.png (64KB - 607 downloads) |
