To start the available equity calculation, in cell AH10 type: AG10.
To calculate the available equity, in cell AH11 type:
AG11SUM(J11,T11,AD11)SUM(H11,R11,AB11), where columns H
and AB denote the tied up capital in trades in markets 1 and 3, respectively.
To start the equity top calculation, in cell AI10 type: AG10.
To calculate the equity top, in cell AI11 type: MAX(AG$10:AG11).
To calculate the drawdown, in cell AJ10 type: (AI10–AG10)/AI10.
To calculate the flat time, in cell AK10 type: IF(AJ10<0,AK91,0).
To calculate the daily return, in cell AL11 type: (AG11AG10)/AG10.
Highlight the cells in row 11 and drag down to fill the cells below with the
formulas in row 11, for as many cells as necessary to accommodate all trades in
all markets. Note that new columns must be added in case you add more markets
to the calculations, and that the column references for the portfolio calculations
will change depending on the number of markets used.
To get a more visual feel for the system, we can make a chart of the equity
curve, as in Figure 26.8, and a chart of the drawdowns as in Figure 26.9. All the318 PART 4 Money Management
FIGURE 26.8
Equity curve chart.