Any ideas on managing multiple units in trading logs?

Discussion in 'Professional Trading' started by mgdpublic, Mar 24, 2011.

  1. I was wondering what the best way would be to record trades in a trading log if I want to do statistical performance analysis and often trade multiple units. I may initiate with 2 units, remove one, add it back, etc.. I'm not sure how to match them for p&L and performance metric purposes. Anyone have a best practice on this?
     
  2. a) decide whether to use FIFO or LIFO

    b) decide whether you want to account for the strategy's P&L, the initial unit's, the add-on's, etc.; or better yet, track them all and then compare whether adding, partial exits and re-entering is adding value (not necessarily $$$, maybe just a smoother equity curve) or not.

    c) Decide whether you want to track size as units (easier) or percentages of the account/capital (more accurate & useful, imho).

    Good luck.
     
  3. Thanks, I think I'd do LIFO. Do you know any software that does that sort of thing? I think that would be kind of hard for me to do in excel.