ending equity,
ending equity,
25 Jul 2013, 22:14
Hello,
Before anything, excuse me if i make mistakes because english is not my mother tongue ;-)
So i have a question, i'm actually running backtest on my server of a cBots, i have some good resultats : 
My strategy doesn't include any stoploss, so somes of the positions can stay open for a while (days,months) in loss. ( Is there a way to close for exemple all the position opens if the equity drops of more than X % of the account ? )
My question is that one : Does the backtester consider the equity in the account ?
For exemple: my looses are so huge that it drawn my account, does that stop the robot or not ?
does it goes negative then positive back when the position are closed ? (in that case, you should add more statistics, to see the evolution of the equities, on a different graphic and independant of the modification of the positions.
furthermore i've discover something really strange :
why is there a lot of missing data ?
Thanks you in advance,
and one more time excuse me for my english ! :)
Replies
kricka
26 Jul 2013, 10:56
Hi,
The first question, is in my opinion, a very important one. Do not place any positions without a stop loss in place. It can actually blow up your account, if there is a technical error or if something goes totally against your position, or if the robot placing orders, goes haywire. A stop loss is on the brokerage server and protect you even if you have a power outage or if your pc computer is malfunction for some reason. That is why so many traders use a VPS in case of such a scenario. Anyways, always have a stop loss in place in the robot's algorithm, placing the initial order.
Your question is how to I get that kind of a protection?
1. Have a stop loss in place in every position you make.
2. Have an account equity protection, in case the stop loss do not get triggered.
How to accomplish this is to write a code in the robot placing the orders so it will protect the trading account, if the account equity reach a certain amount in loss, it will close all open positions.
@kricka
cAlgo_Development
26 Jul 2013, 11:47
Right now backtesting does not check your Equity and Free Margin. This is not very good and in case you have long-living positions you can miss margin call. From our point it is clear that we must improve our backtesting to handle such situations. From trader's point, first of all you can implement margin checks inside your robot, during backtets it will realize that there is no free margin you will handle this.
As for data, I agree with susantasaren, there is no missing trendbars, but there are gaps in prices that happen sometimes in real life.
@cAlgo_Development
susantasaren
26 Jul 2013, 08:06
RE:
For the second question , I can say that they are not missing data but slippages.
@susantasaren