hey @Streak
could you please help me to understand why you have an Initial Capital field and how that works?
say if I give 10000 as initial capital, how will streak consider this??
thanks in advance
hello @Rama_Prasad_Shah
Kindly note that Initial Capital is to represent total capital in account for that individual trade during a backtest period, and max allocation is the amount you want to allocate per trade. The user must enter the desired initial capital value such that it is higher than the product of quantity and the instrument’s close price [Initial Capital >= (Quantity x Close Price) for the instruments being tested].
Please note, in backtesting, an entry will be taken only when the notional value of the trade is less than the ‘initial capital + Cumulative Profit or Loss’. Also, if you want the trades to happen on a fixed quantity/lots, keep the ‘Initial Capital’ in your strategy to its default value (i.e. 10000000).
Say for instance in the image below, if you allocate an initial capital of 10,000INR and backtest the strategy, then you can see the strategy getting backtested for the respective stock except for BOSCH LTD. This is because the price of the stock is higher than the capital assigned for backtesting.
hope this helps.