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Day Trade Nasdaq Futures with Portfolio Money Management Algorithms


One way to manage multi-strategy automation is to use a Portfolio Money Management Algorithm.


A Portfolio Money Management Algorithm allows a trader to manage many strategies and dynamically select which ones to trade in the composite based on the performance of the individual strategy. The Portfolio Money Management Software allows a quantitative trader to test and automate the exact same setup that has been backtested.


It is important that the software used to implement a trading program is the consistent with the way it has been tested. Developing strategies is really two-fold in its most basic form.

1.) Market Strategy

2.) Strategy Execution


Market Strategy can vary from trader to trader based on proprietary algorithms and historical market research. Strategy Execution is more of a straightforward concept that can be micromanaged to find the most efficient way to execute a trade.


Once a signal is received based on a market strategy algorithm, a strategy execution algorithm can then be used to enter and exit the market.


The success of a trading program depends on Market Strategy but finding software to combine strategies into one portfolio setup where multiple strategies can be implemented on one chart, requires some unique Strategy Execution software such as the Portfolio Money Management Algorithm.


The Portfolio Money Management Algorithm software is customizable, allowing a trader to use existing algorithmic trading ideas as well as build on those ideas for a custom trading setup.


Staring with software that has been developed and then customizing it is a fast-track approach to implementation that can be more efficient that "re-inventing the wheel".


The most basic form of the PMMA is to use it as a marketposition trader and take net positions up to a maximum number of contracts and apply a stop loss and profit target to exit the trade.


More advanced customizations that could be applied are to measure performance statistics of each strategy and use only those strategies that meet the criteria.


Sibilance is a practical application of the Portfolio Money Management Algorithms (PMMA). In one chart, it trades the E-mini Nasdaq futures with one E-mini futures contract per signal while in another chart it trades 500 shares of TQQQ per signal.

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U.S. Government Required Disclaimer - Commodity Futures Trading Commission. Futures and options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

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CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY, SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

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