Back to Community
Backtest/Live Trading Using too much Capital

So, I have my initial capital set to $100,000.00 (one hundred-thousand) in the backtester and in the live paper trading through Quantopian, and both will allow me to buy unlimited shares, I thought it would throw an error. Is there a way to force it to only use the amount of capital allocated? Thanks!

1 response

Hi Rick,

There's no automatic limit to the amount of money you can spend. The backtester effectively runs as though you're using a margin account. In order to limit the amount of money you spend to your capital base, you will have to manually control the amount that you order. You might want to use context.portfolio.portfolio_value to determine the value of the account and then assign your weights accordingly. You may also need to explicitly manage open orders as explained in Lesson 10 of the Getting Started Tutorial.

Disclaimer

The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by Quantopian. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. No information contained herein should be regarded as a suggestion to engage in or refrain from any investment-related course of action as none of Quantopian nor any of its affiliates is undertaking to provide investment advice, act as an adviser to any plan or entity subject to the Employee Retirement Income Security Act of 1974, as amended, individual retirement account or individual retirement annuity, or give advice in a fiduciary capacity with respect to the materials presented herein. If you are an individual retirement or other investor, contact your financial advisor or other fiduciary unrelated to Quantopian about whether any given investment idea, strategy, product or service described herein may be appropriate for your circumstances. All investments involve risk, including loss of principal. Quantopian makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances.