Discussion of article "Portfolio trading in MetaTrader 4"

[MetaQuotes]

New article Portfolio trading in MetaTrader 4 has been published:

The article reveals the portfolio trading principles and their application to Forex market. A few simple mathematical portfolio arrangement models are considered. The article contains examples of practical implementation of the portfolio trading in MetaTrader 4: portfolio indicator and Expert Advisor for semi-automated trading. The elements of trading strategies, as well as their advantages and pitfalls are described.

Here you can examine the sample portfolio graph construction (indicator bottom subwindow) with the target function graph attached:

Author: transcendreamer

[Ernest Klokow]

This article is just mind boggling! And this is just an introduction?? Wow!

[Thomas Schwabhaeuser]

Ernest Klokow:
This article is just mind boggling! And this is just an introduction?? Wow!

Why?

1. Unsurprisingly, a reasonable place for entering the theory is Modern portfolio theory
2. Alternatively, one may choose to start with the foundational Markowitz model, of course.

In both cases, I'd recommend not to skip the References of 1. and the References of 2.

For getting a better idea of the challenges to be mastered one may have a look at the video on a Full Time Trader's preferred trading style even though I point out my

Disclaimer:

I do not recommend any sort of strategies nor any service whatsoever by linking the video which does not even address all risks involved with trading financial instruments. I am not using this style myself, I have not tested it, and I have no actual proof that it is profitable for anybody.

After all, it is not by chance that professionals usually aim for Delta neutral portfolios.

The only recommendation I actually can give is to understand as much of the page Risk-Neutral Measure as possible!

[Tomas Michalek]

This is very interesting article, thank you.

Personaly I like more working with external software for creating and evaluating portfolio with correlation and other statistics more, than adjusting or programming Metatrader. But idea stays the same, do not use single strategy, but rather portfolio of matching strategies for better sustainability.