diff --git a/tests/test_algorithm.py b/tests/test_algorithm.py
index 5d988a7d..64f760d7 100644
--- a/tests/test_algorithm.py
+++ b/tests/test_algorithm.py
@@ -4278,7 +4278,6 @@ class TestEquityAutoClose(WithTmpDir, WithTradingCalendars, ZiplineTestCase):
             env=env,
             sim_params=resources.sim_params,
             data_frequency='minute',
-            capital_base=capital_base,
         )
 
         output = algo.run(resources.data_portal)
diff --git a/zipline/algorithm.py b/zipline/algorithm.py
index e1abfe32..b645e4a9 100644
--- a/zipline/algorithm.py
+++ b/zipline/algorithm.py
@@ -144,8 +144,6 @@ from zipline.gens.sim_engine import MinuteSimulationClock
 from zipline.sources.benchmark_source import BenchmarkSource
 from zipline.zipline_warnings import ZiplineDeprecationWarning
 
-DEFAULT_CAPITAL_BASE = 1e5
-
 
 log = logbook.Logger("ZiplineLog")
 
@@ -181,8 +179,6 @@ class TradingAlgorithm(object):
         tracebacks. default: '<string>'.
     data_frequency : {'daily', 'minute'}, optional
         The duration of the bars.
-    capital_base : float, optional
-        How much capital to start with. default: 1.0e5
     instant_fill : bool, optional
         Whether to fill orders immediately or on next bar. default: False
     equities_metadata : dict or DataFrame or file-like object, optional
@@ -303,12 +299,9 @@ class TradingAlgorithm(object):
             get_calendar("NYSE")
         )
 
-        # set the capital base
-        self.capital_base = kwargs.pop('capital_base', DEFAULT_CAPITAL_BASE)
         self.sim_params = kwargs.pop('sim_params', None)
         if self.sim_params is None:
             self.sim_params = create_simulation_parameters(
-                capital_base=self.capital_base,
                 start=kwargs.pop('start', None),
                 end=kwargs.pop('end', None),
                 trading_calendar=self.trading_calendar,
@@ -505,7 +498,7 @@ class TradingAlgorithm(object):
     blotter={blotter},
     recorded_vars={recorded_vars})
 """.strip().format(class_name=self.__class__.__name__,
-                   capital_base=self.capital_base,
+                   capital_base=self.sim_params.capital_base,
                    sim_params=repr(self.sim_params),
                    initialized=self.initialized,
                    slippage=repr(self.blotter.slippage_func),
diff --git a/zipline/finance/trading.py b/zipline/finance/trading.py
index fb544122..78195d25 100644
--- a/zipline/finance/trading.py
+++ b/zipline/finance/trading.py
@@ -28,6 +28,9 @@ from zipline.utils.memoize import remember_last
 log = logbook.Logger('Trading')
 
 
+DEFAULT_CAPITAL_BASE = 1e5
+
+
 class TradingEnvironment(object):
     """
     The financial simulations in zipline depend on information
@@ -128,7 +131,7 @@ class TradingEnvironment(object):
 class SimulationParameters(object):
     def __init__(self, start_session, end_session,
                  trading_calendar,
-                 capital_base=10e3,
+                 capital_base=DEFAULT_CAPITAL_BASE,
                  emission_rate='daily',
                  data_frequency='daily',
                  arena='backtest'):
diff --git a/zipline/utils/run_algo.py b/zipline/utils/run_algo.py
index 9408cc99..2d3b2e5b 100644
--- a/zipline/utils/run_algo.py
+++ b/zipline/utils/run_algo.py
@@ -157,7 +157,6 @@ def _run(handle_data,
 
     perf = TradingAlgorithm(
         namespace=namespace,
-        capital_base=capital_base,
         env=env,
         get_pipeline_loader=choose_loader,
         sim_params=create_simulation_parameters(