Backtesting, Problem with Equity

raphael.mca@hotmail.com
24 Apr 2017, 16:31

What cBot are you using?

fermjy
24 Apr 2017, 16:34

RE:

raphael.mca@hotmail.com said:

What cBot are you using?

What do you mean? My own cBot

fermjy
24 Apr 2017, 16:40

Apparently the backtesting keeps adding entries without an exit point... I just know this because I used Print to see which Positions had a net loss... And It Prints opened Positions 2 hours after the Backtesting stops.
So the backtesting keeps going, but It doesn't show it in the charts and data... so... I have no idea whats going on.. and why this happens...

GURJEETSAINI
06 Aug 2017, 04:12 ( Updated at: 21 Dec 2023, 09:20 )

RE:

@fermjy: i too have see the same issue when there are no losses still the equity drops down to  zero and sometimes negatice and this is not rite as a test as these results are incorrect

see my testing results are all positive(gains) BUT equity chart shows negative towards the end.

fermjy said:

Hello! I need some assistance. This is not the first time that happens(I ask for it now because I'm getting sick of it..). For some reason, the Equity in the Equity Chart.. goes down to 0. And in the Price Chart... there are no big losses or DD.
So.. Why this happens a lot? The history and trade statistics don't show the Equity Drawdown of the Equity Chart.
Any explanation?
Thanks.

amsman
06 Aug 2017, 05:51

Hi Gurjeetsaini, what’s happening during your back testing is Drawdown. Your cBot is opening positions (trades) which are not being closed by either a Take Profit (TP) or Stop loss (SL).

I don't see any losing trades in your Chart. The "retracement" logic you are using works perfectly if you are trading with the trend but will blow your account if the trend changes direction. Especially on a small $1000 account. (we run a similar logic cBot) 

With back testing, you have to add a SL (say ~2 x TP) so you can see all the unclosed losing trades (negative equity). It will also show you that when using a SL a cBot will be defeated by market algorithms 99% of the time, proving how manipulated price action really is.

4 ways to improve Robot performance is (1!) use minimal quantity lots ie: 0.01 / 0.05 which you are doing, (2!) use a larger SL, (3!) improve trade entry/exit confirmation logic in your cBot or…. Most dangerous (Risk) of all use “smart hedge” logic within the cBot which will hold equity and improve margin.

amsman
06 Aug 2017, 06:25

RE:

amsman said:

Hi Gurjeetsaini, what’s happening during your back testing is Drawdown. Your cBot is opening positions (trades) which are not being closed by either a Take Profit (TP) or Stop loss (SL).

I don't see any losing trades in your Chart. The "retracement" logic you are using works perfectly if you are trading with the trend but will blow your account if the trend changes direction. Especially on a small $1000 account. (we run a similar logic cBot) 

With back testing, you have to add a SL (say ~2 x TP) so you can see all the unclosed losing trades (negative equity). It will also show you that when using a SL a cBot will be defeated by market algorithms 99% of the time, proving how manipulated price action really is.

4 ways to improve Robot performance is (1!) use minimal quantity lots ie: 0.01 / 0.05 which you are doing, (2!) use a larger SL, (3!) improve trade entry/exit confirmation logic in your cBot or…. Most dangerous (Risk) of all use “smart hedge” logic within the cBot which will hold equity and improve margin.

 

Opp's... didn't read before posting........ Hi Gurjeetsaini, what’s happening during your back testing is negative equity (not Drawdown) you are running out of equity during the back test.

GURJEETSAINI
07 Aug 2017, 00:34

RE:

amsman said:

Hi Gurjeetsaini, what’s happening during your back testing is Drawdown. Your cBot is opening positions (trades) which are not being closed by either a Take Profit (TP) or Stop loss (SL).

I don't see any losing trades in your Chart. The "retracement" logic you are using works perfectly if you are trading with the trend but will blow your account if the trend changes direction. Especially on a small $1000 account. (we run a similar logic cBot) 

With back testing, you have to add a SL (say ~2 x TP) so you can see all the unclosed losing trades (negative equity). It will also show you that when using a SL a cBot will be defeated by market algorithms 99% of the time, proving how manipulated price action really is.

4 ways to improve Robot performance is (1!) use minimal quantity lots ie: 0.01 / 0.05 which you are doing, (2!) use a larger SL, (3!) improve trade entry/exit confirmation logic in your cBot or…. Most dangerous (Risk) of all use “smart hedge” logic within the cBot which will hold equity and improve margin.

Hi amsman 

Thanks for the responce.I appreciate your comments.Thanks