Creating Your Own VBO Allocation

There are 16,777,215 possible combinations of the 24 VBO trading methodologies linked here  our monthly report showing the top 100,000 sorted by reward risk (column E), performance dates January 2000 through April 2020. For detailed instructions see sections 1-11 below or contact me and I’ll walk you through it.  

To review monthly/annual performance for any VBO allocation or create your own use the Jan 2000 – Apr 2021 VBO Allocation Spreadsheet enter the number of contracts traded for each program in column I, cells 24-47, performance shows columns B through I lines 53-374. 

1)_What these reports show and how to use them.

Download this example report (sorted by reward risk)  & enable editing

A) Cumulative net profit.
B) Maximum drawdown, (highest daily high to lowest daily low).
C) Current drawdown.
D) Reward risk, descending order, (profit divided by drawdown).
E) Minimum start balance (margin + maximum drawdown).
F) ATA allocation number
G) Methods and markets traded in each allocation

2) Qualifying an allocation

Choose the allocation you’d like to review.

2) Note the minimum in column F

3) Methods and markets traded show on the right

4) This example

$3,212,554 cumulative net profit per unit 2000-2021
-$28,906 highest daily high to lowest daily low drawdown.
-$19,594 current drawdown
111.14 lifetime net profit divided by maximum drawdown
$102,706 lowest permissible start balance for auto-trade.
132911341 set number
VBO programs traded

5) To build out this allocation open this spreadsheet

Determine your start balance

The lowest permissible auto-trade start balance for this allocation is $102,706, I’d work with $125,000 to avoid any margin issues and adequately prepare for drawdowns.

6) Enter your start balance in cell E24

7) Cells I24-I46 control what methods will show in performance.

8) Enter 1 for each contract traded in the allocation

9) The spreadsheet shows

A) Interactive performance charts
B) Allocation performance summary
C) Monthly/annual performance.
D) Monthly/annual performance for every method traded.
E) Links to contract specifications, margin requirements, quotes and data.

10) Cells J24-J47 link spreadsheets for each method traded

11) These spreadsheets provide

A) Full disclosure of trading methodology.
B) Life of program performance summaries.
C) 2000-2021 daily open, high, low, close.
D) Every day’s buy, sell, stop, objective and all volatility calculations.
E) Every trade entry, offset, profit, loss, cumulative profit or loss.

12) Any allocation can be traded automatically for your account and modified at anytime.

13) Using any reasonable maintenance balance

A maintenance balance is nothing more than a stop loss based on the liquidation value of the account, example

$102,706 lowest permissible start balance for auto-trade
$125,000 Your starting balance
-$28,906 previous worse case drawdown
-$50,000 Risk tolerance
$75,000 Maintenance balance

Should the account’s balance drop below $75,000 including unrealized profit or loss all positions would be liquidated on or before the next close.

About Automated Trading Accounts (ATAs)
The ATA Fee Structure
Defining Overall Risk for Your ATA
Brokerage Firms
How Funds Are Protected
Open An Account
Futures General Information
Options General Information
Market Analysis Pages
Educational Resources

If you have any questions or want me to walk your through what were doing and how contact me.

Peter Knight Advisor
Direct VI Phone 24/7 +340 244 4310
Skype: Peter-Knight-Advisor
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Peter_Knight@peterknightadvisor.com

 


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