Choosing how much capital to invest

Hi,

In the performance report Zorro helps us with specifying the capital required for the strategy to trade. Let's make it simple and suppose that this capital in this example is 100$. If the test results says that the strategy will grow the capital with 68% annually (average) my capital will increase with 68$ dollars the first year and so on (I know this may not be the case in real trading).

But let's say I want to invest 2000$ instead of the capital required, which in this simple example is 100$, how can I decide that amount? Do I need to invest more lots?

Thanks in advance and have a great summer

Ibra

Ibra,

You would need to adjust the margin. Margin controls how much you are actually trading with. Capital just ensures that on that margin amount your account can survive. If starting capital is $100, and margin for that system is $10, and you want to trade $2000 instead of $100, then $2000/$100*$10 = $200. So...if you want to use 20 times the capital, then you use 20 times the margin.

Hi Thirsty!

Thanks for replying. Follow-up question: How do I change the margin?

Hi Ibra,

You can only adjust margin, with Zorro S. Otherwise you need to use the pre-defined capital requirements and margin requirements built into each system...at least I believe that is how it works. Someone correct me if I'm wrong.

If you have Zorro S, when you open zorro and start up your strategy, there will be a margin slider, where you can adjust the average margin per trade. Optimal F will then kick in to adjust the margin on individual trades, based on the training.

Trust this helps. All this is in the manual too.

Thirstywolf.

Hello!

Thanks for the education . How about using Lots variable instead of margin?