New features on the m3- Money Management Modeler – modeling returns on at risk AND overall trading capital on a leg by leg basis
m3 - Money Management Modeler = "variables3le enhancements"
http://www.screencast.com/t/ZhHT5Pbz (Click to enlarge)
As good as the m3 – Money Management Modeler is, I have added a couple of new features to the “variables3le” worksheet enhancing individuality of the application.
1) First you can now determine whether you wish to calculate your returns using CASH on deposit only or on MARGIN when modeling stock trades.
2) Secondly, returns on both the at risk capital which is another way of saying the cost of a particular trade, AND the return on your overall trading capital can now be made on a leg by leg basis. For example, If I initiate a trade and it is a winner, I have no idea whether the trade will reach profit target 2 or 3. (Remember a winning trade is defined as a trade that reaches at least the 1st point objective.) With the latest changes to the platform I can now see my return at profit target 1, profit 2 or profit target 3 in percentage terms. Again the calculation is made on both the at risk capital for that individual trade or on my overall trading capital. Prior to this you could only calculate your returns on the assumption that you reached your 3rd leg point objective. Above is a screen shot higlighting the latest changes and stay tuned for follow up blog highlighting new changes that have also been made to the LCD Graph and other cosmetic changes to the platform.
Fulcrum Shift Trading
Tags: objectives modeling, position sizing, Returns, risk management