Back testing

• 07/26/2021 at 9:13 AM #174168
  SpreadBetMH

  Hi there,

  I have a few questions about Back-Testing,

  So, I go to “Estimated brokerage fees” and as I trade FOREX, I always add a 2 PIPS, but the results between having a 2pips spread and not is Night & Day,

  I go from having a good strategy with a good Equity Curve to having an account that’s wiped out?

  What’s the best way to Back-Test Variables

  Back-Test them individually or two at a time or more?

  is it a good idea to have all the Variables that are in the strategy present in the “Label in program”  section, with the correct values, and as I said just test one or two at a time?

  

  SpreadBetMH

  Participant

  Topics: 13

  Replies: 13

  Been thanked: 0 times
  07/26/2021 at 11:04 AM #174177
  Eric

  I never use the spread-box i only look at avg gain per trade and then estimate whats left when spread and slippage are paid

  Remember that if using limits to exit the spread doesent matter (as long you get filled)

   

  

  Eric

  Participant

  Topics: 18

  Replies: 441

  Been thanked: 84 times
  07/26/2021 at 11:42 AM #174179
  TempusFugit

  H SpreadbeatMH,

  Interesting questions you ask.

  Yes, I agree totally that spread is bigger burden that many traders think. Usually what they see is just a very little number and don´t care about . In my case I know that without that “little” extra my results would be MUCH better, and also makes a lot of very interesting scalping systems just useless. There are also other costs beside the spread… overnight cost, currency exchange rates+admin cost and slippage. Altogether it is an important amount that you have to overcome to obtain benefit, maybe not for others much better than me 😉

  About the way to backtest variables I guess each trader has its own way. In my case I rather test each variable individually, not chosing the best result but the one that I consider the most robust and considering  as important or more that the total result  the %win and the winpertrade

  

  TempusFugit

  Participant

  Topics: 41

  Replies: 232

  Been thanked: 65 times
• Author
  Posts