Backtesting with different leverages
Backtesting with different leverages
09 Aug 2020, 19:09
Hi,
I try to test with different leverages. I thought if i had 2 different accounts like; one with 50 default leverage and one with 100 leverage it will be used in backtesting in that account. But as far as i see this is not the case.
How can i backtest with different leverages?
If i run a bot ina specific account will it use the accounts leverage while creating market orders?
Best Regards
Replies
ergun
10 Aug 2020, 19:55
RE:
I back tested my bot with different test accounts which had different leverages. But the result was same profit. So i was confused. Is there a way to log the current leverage in the bot so i can see?
PanagiotisCharalampous said:
Hi ergun,
When backtesting, the cBot will use the leverage of the selected account. Can you please explain why do you think this is not the case?
Best Regards,
Panagiotis
@ergun
PanagiotisCharalampous
11 Aug 2020, 07:44
Hi ergun,
I am not sure why do you expect different profits. Leverage has nothing to do with it. If you trade with the same volume, you will get the same results.
Best Regards,
Panagiotis
@PanagiotisCharalampous
ergun
11 Aug 2020, 23:55
RE:
Hi Panagiotis,
I am confused. What is the point of leverage then? I am thinking in lots by the way. How is lots converted to volume, i have no idea.
Best
PanagiotisCharalampous said:
Hi ergun,
I am not sure why do you expect different profits. Leverage has nothing to do with it. If you trade with the same volume, you will get the same results.
Best Regards,
Panagiotis
@ergun
PanagiotisCharalampous
12 Aug 2020, 08:04
Hi ergun,
Leverage only affects the margin required for a position to open. Let's assume you have two accounts, one with balance $1000 and leverage 1:100 and one with balance $1000 and leverage 1:500. If you open a position of one lot (100000 volume) on both of them, on the 1:100 account you will use all your margin ($1000) while on the 1:500 account, you will only use $200. This means that on the 1:500 account you can open another four positions worth one lot. This is the actual use of leverage, to open positions of higher volumes. However positions with the same volume will have the same results on both.
Best Regards,
Panagiotis
@PanagiotisCharalampous
ergun
12 Aug 2020, 21:34
RE:
Thanks for detailed explanation. So if i understand correctly; it only effects the margin but not profit per pip with same volume?
PanagiotisCharalampous said:
Hi ergun,
Leverage only affects the margin required for a position to open. Let's assume you have two accounts, one with balance $1000 and leverage 1:100 and one with balance $1000 and leverage 1:500. If you open a position of one lot (100000 volume) on both of them, on the 1:100 account you will use all your margin ($1000) while on the 1:500 account, you will only use $200. This means that on the 1:500 account you can open another four positions worth one lot. This is the actual use of leverage, to open positions of higher volumes. However positions with the same volume will have the same results on both.
Best Regards,
Panagiotis
@ergun
PanagiotisCharalampous
13 Aug 2020, 07:54
Hi ergun,
Yes this is correct.
Best Regards,
Panagiotis
@PanagiotisCharalampous
PanagiotisCharalampous
10 Aug 2020, 08:21
Hi ergun,
When backtesting, the cBot will use the leverage of the selected account. Can you please explain why do you think this is not the case?
Best Regards,
Panagiotis
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