Account & Brokerage

The Account & Brokerage tab in the Automatic Strategy Builder (ASB) allows users to simulate various properties of a brokerage account to see how a strategy would behave under specific conditions, including fees, spreads, and other brokerage characteristics.

Main Parameters

This section allows users to control basic account and brokerage properties, ensuring the backtest accurately reflects real-world trading conditions.

• Accounting: Set the type of account, either Netting (FIFO) or Hedging.
• Currency: Define the main account currency. All backtest results will be shown in this currency.
• Initial Deposit: Set the starting balance of the account.
• Leverage: Configure the leverage settings for the account.
• Stop Out Mode: This protective measure limits undesired drawdowns by closing positions and stopping the strategy's autotrading when a certain level is reached.
  • Percentage Ratio: Set the stop-out level as a percentage of the initial balance. For example, if set to 20% with an initial balance of $10,000, the stop-out mode activates if the balance drops below $8,000.
  • Free Margin Value: Define the free margin value at which stop-out mode will be activated.
  • Stop Out Level: Input the stop-out level as either a percentage or a specific value.

Per Instrument Type Settings

These settings allow users to specify how the account handles different types of instruments. Each instrument type can have its own unique settings, including slippage, order sizes, and commission structures.

• Slippage: Define the tolerated slippage, which is the acceptable difference between the expected order price and the actual execution price.
• Min Order Size: Set the minimum order size requirement. This cannot be lower than the minimum order size set by the instrument provider.
• Max Order Size: Set the maximum order size limit.
• Commission per Trade: Specify the commission charged for each trade.
• Commission per Size: Define the commission charged based on transaction size, which can be per lot or per contract.

Instrument Types

Users can apply the above settings to the following instrument types:

• Forex
• Futures
• Stocks
• Indices
• Options
• CFDs
• ETFs
• Metals
• Cryptocurrencies
• Bonds

Importance of Account & Brokerage Settings in Strategy Building

Simulating account and brokerage properties is essential for accurately assessing a strategy's performance under real-world conditions. These settings help to:

1. Reflect Real Trading Costs: Incorporate commissions, slippage, and order size limitations, providing a realistic view of potential profits and losses.
2. Manage Risk: Utilize leverage settings and stop-out modes to understand how different levels of risk and protective measures affect strategy performance.
3. Customize per Instrument: Tailor settings for various instrument types to match specific trading conditions and requirements, ensuring strategies are tested in environments that mimic actual trading scenarios.

Summary

The Account & Brokerage section in the ASB provides comprehensive tools to simulate brokerage account conditions, including fees, spreads, and other trading parameters. By configuring these settings, users can ensure their backtests reflect realistic trading scenarios, leading to more accurate and reliable strategy evaluations. This simulation capability enhances the robustness and adaptability of the trading strategies created within the ASB, preparing them for real-world application.