Money Management

The platform handles resource management via risk based position sizing, pyramiding, and stop loss limiting.

Position Sizing

Whenever a runner enters a position, the size is calculated using the following formula:

Balance x Risk / ( ATR x Stop Loss Multiplier) x Last Ticker Price x Pyramid Multiplier

  • Balance - User’s current balance

  • Risk - Amount of risk for each trade (eg. 1% = 0.01)

  • ATR - Average True Range based on the last X bars

  • Stop Loss Multiplier - A value to compute the stop loss

  • Last Ticker Price - Last ticker’s price

  • Pyramid Multiplier - A value to compute based on a strategy’s max units (eg. 5 Max Units = 0.30, 0.25, 0.20, 0.15, 0.10)

Pyramiding

Units are added once the price goes the same direction and reaches ATR x ATR Multiplier .

  • ATR - Average True Range based on the last X bars

  • ATR Multiplier - A value to compute with the ATR

Stop Loss

Stop loss is activated once the price goes the opposite direction and reaches ATR x ATR Multiplier .

  • ATR - Average True Range based on the last X bars

  • ATR Multiplier- A value to compute with the ATR