EQUITY CURVE SIMULATION

• 04/13/2023 at 8:00 PM #213251
  Tariq

  Hi All,

  I am trying to duplicate the equity curve but controlled by dummy buy/sell signals. This is in order to have 2 equity curves, the original controlled by real buy/sell signals, the other controlled by dummy buy/sell signals. The purpose is to observed when the dummy strategy is losing money and stop the trading on the original strategy/equity curve until the dummy strategy starts making money again. If we use only the original equity curve and stop trading when it starts losing money we impact the equity curve and cannot tell when it (the strategy) would have become profitable again, if it had remained trading. So does anyone know of an easy way to create a duplicate equity curve controlled by dummy buy/sell signals that keep the strategy and equity curve intact when trading stops on the real strategy/equity curve. Many thanks in advance if anyone can help.

  

  Tariq

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  04/13/2023 at 8:44 PM #213252
  JS

  You might like this…

  https://www.prorealcode.com/blog/learning/how-to-improve-a-strategy-with-simulated-trades-1/

  2 users thanked author for this post.

  Tariq, Nicolas

  

  JS

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  04/14/2023 at 10:33 AM #213282
  Tariq

  Thank you JS. It seems very close to what I am looking for :). I will analyze/test this and come back with any feedback/questions. My initial observation is that there is no perfect strategy that fits all market conditions, some are better than others and the more specific a strategy the higher the profits when trading in the correct market conditions, but the higher the losses when not. Also we cannot test/simulate all market conditions so even a well tested and thought through strategy can have significant losses. Lets see how I get on with this……. and thanks to Nicolas for providing it.

  

  Tariq

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  04/24/2023 at 11:35 AM #213668
  Tariq

  Hi All,

  I have modified the original code from Nicolas, basically changed the buy and exit criteria. Running this through backtest with optimization parameter’s the following popup error occurs about half way through optimization.

  “ParseError at [row,col]:[1,2239791] Message:XML document structures must start and end within the same entity” If the the backtest is run again the same error occurs but the numerical value in the brackets changes. Does anyone know the basic cause of this error? I can upload the code if necessary or should I raise a ticket?

  

  Tariq

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