Has anyone tried using the 'UseEquity' option in GT-Shadow?

[Benjomeyer]

Has anyone tried using the 'UseEquity' option in GT-Shadow? It you are trading multiple currency pairs, I thought this would be a useful way of managing the overall risk, but when I try using it, both in back-testing and demo forward testing, it doesn't seem to work. The lot sizes still seem to be calculated based on the balance, rather than the equity.

Any help would be appreciated.

[PipCop]

Ben,

I asked Jerry (of Forex Goldmine) about this, and here's his answer:

If trading multiple currency pairs, then the calculation of lot size is based on something totally different which takes into account the relationship between the two particular pairs being used. The use of equity is better used when trading one pair. I will take a look to see if there is a way to better utilize that equity setting when using two pairs, but if I make a change in that, it will have to be for a future update.

[Benjomeyer]

Thanks for a quick response, Pipcop.

I'm not sure whether we're talking about quite the same thing though. I'm not talking about 2 currency pairs in a shadow hedge configuration. I'm talking about trading with 3 or 4 pairs, each in a separate instance of GT-Shadow with different magic numbers.

It would be nice to be able to use the UseEquity option so that if one or two of the pairs were experiencing large drawdowns, the lot sizes on new trades for all the pairs could be adjusted accordingly minimising the chance of an account blowout.

[PipCop]

Oh, I understand what you mean. I will ask Jerry and provide clarification and see what he says.

[PipCop]

Jerry says:

If only trading one currency on each instance of the GT-Shadow, it can be done by following the directions that I have in the FAQs on my web site. If using 2 currencies at one time for each instance, it follows a different formula and cannot be done at this time.