The 18% portfolio stop is part of my risk plan, but I want to be careful with the wording. I do not currently have it as a fully automated broker level kill switch that flattens everything across the account.
What I’m working on in TradeStation is more of a portfolio/account level drawdown monitor. It tracks account equity versus a peak equity level and shows where the portfolio is relative to my 10%, 12%, 15%, and 18% drawdown levels. From there, the next step would be having each live strategy check a portfolio stop flag before taking new trades.
So right now, I’d call it a monitored risk rule rather than a fully automated hard stop.
Thank you for replying. You mentioned ... "the next step would be having each live strategy check a portfolio stop flag before taking new trades." This is exactly what I have been trying to establish inside TradeStation.
It has been challenging, and still no success yet. I'm interested to see your final result!
It was interesting to read your thoughts on what is planned for the portfolio, particularly the 'Portfolio Stop Plan'.
You mentioned in your post: "I added an 18% closed-trade drawdown hard stop at the portfolio level."
Has this 'hard stop' been coded into your live trading platform so that it is automated?
If yes, have you done this on TradeStation, and could you please DM me at your earliest convenience?!?! Thanks very much.
Hey Hemmo, thanks for the comment.
The 18% portfolio stop is part of my risk plan, but I want to be careful with the wording. I do not currently have it as a fully automated broker level kill switch that flattens everything across the account.
What I’m working on in TradeStation is more of a portfolio/account level drawdown monitor. It tracks account equity versus a peak equity level and shows where the portfolio is relative to my 10%, 12%, 15%, and 18% drawdown levels. From there, the next step would be having each live strategy check a portfolio stop flag before taking new trades.
So right now, I’d call it a monitored risk rule rather than a fully automated hard stop.
Thank you for replying. You mentioned ... "the next step would be having each live strategy check a portfolio stop flag before taking new trades." This is exactly what I have been trying to establish inside TradeStation.
It has been challenging, and still no success yet. I'm interested to see your final result!