The money management algorithms «watch» your original system (also know as «base», «parent», or «master» system») run in order to generate
the base equity curve and trades while the money management algorithm then makes its decisions based on the results of the master system to trade the «algorithm» or «child».
Not exact matches
There are some trading algorithms that show a geometric increase in the number of contracts
based on increasing profits creating exponential
equity curves.
While your trading system makes market
based decisions, the
equity curve algorithm trades your trading system.
You will insert the indicator we provide into your
base strategy window and then use the Money Management Algorithm Trading System (that we also provide) that will read the Marketposition and Open
Equity of the
base system to take trades using rules from any of our Algorithms including the
Equity Curve Management Rules, Pinpoint Entry Algorithm, Consecutive Losing Series Algorithm, and more.
This rule requires that the moving average of the short period (L1) of the closed
equity curve must be greater than the moving average of the longer period (L2) closed
equity curve.This is similar to a moving average crossover strategy
based on price data in the market except that we use the moving average of the
equity curve and require that it is «up» in order to take trades in the system.