Discussing the article: "Balancing risk when trading multiple instruments simultaneously"

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Check out the new article: Balancing risk when trading multiple instruments simultaneously.

This article will allow a beginner to write an implementation of a script from scratch for balancing risks when trading multiple instruments simultaneously. Besides, it may give experienced users new ideas for implementing their solutions in relation to the options proposed in this article.

This article will touch upon the topic of balancing risk when trading multiple instruments intraday at the same time. The purpose of this article is to enable the user to write a code for balancing instruments from scratch, and to introduce experienced users to other, perhaps previously unused, implementations of old ideas. To do this, we will consider the definition of the concept of risk, select criteria for optimization, focus on the technical aspects of implementing our solution, analyze the set of standard terminal capabilities for such an implementation, and also touch on other possible ways to integrate this algorithm into your software infrastructure.

When trading several financial instruments simultaneously, we will take into account two main factors as risk balancing criteria.

  • Symbol tick price
  • Symbol average daily volatility

Author: Aleksandr Seredin

 
Great article, the idea is super!!!Risk is our everything. We should trade from risk. I'm thinking of putting more professional risk management into my bots, but what kind?
 

nothing at all.

not about the risks, not about the multisymbol.

shame

 
Yevgeniy Koshtenko #:
Great article, the idea is super!!!Risk is our everything. We should trade from risk. I'm thinking of putting more professional risk management into my bots myself, but what kind?

Thanks. The first thing to look at is what decision making tool is used for entry. How long we sit in a pose, what are the entry criteria. In short, this calculation takes into account one day for entry and exit. If we make an overnight decision, the risk on the instrument is doubled and we will have to re-balance it taking into account yesterday's positions.

 
Maxim Kuznetsov #:

nothing at all...

not the risks, not the multisymbol.

shame

Thank you for your comment

 

Many people don't want to hear about risk, and here is the balance, and in general it is a sore subject for many traders

 
Anatoliy Migachyov #:

Many people don't want to hear about risk, and here is the balance, and in general it is a sore subject for many traders

I completely agree. In one sentence, but how many questions are touched upon:

- They don't want to hear, hoping that if "if you don't call the bad guy, it will be quiet". But it doesn't work like that on the market, I think there is no place for pralogical mystical thinking.

- As a rule, one starts to think about risks not earlier than after the first drained deposit :)

- and even after the first drained deposit, everyone starts to "piss off" the word "balance", simply because it becomes clear that the profitability starts to fall from the balance.

- hence the "painful topic" for those who could not understand the risks and could not build a stable trading system, and then these people start to write comments like "about nothing" and "shame" ))))

And respect to the author of this comment for such a succinct and informative statement. Thank you

 
Thanks for the code example, the main issue is depending on what timeframe your trading how can we define normal and abnormal risk. Right?
 
nowenn #:
Thanks for the code example, the main issue is depending on what timeframe your trading how can we define normal and abnormal risk. Right?

All right. It is usually the daily timeframe that is used to assess risk.

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