Good Back Test Report But Bad Equity Curve

SpreadBetMH · 2021-10-29T10:00:08+00:00

Hello Why is it when I back test a strategy and have Pro Back Test in Tick by Tick switched on, I get a good Optimize Report and a bad Equity Curve? Do I need to upgrade? I have attached a file showing the results. Thank You

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10/29/2021 at 11:00 AM #180536 quote

SpreadBetMH
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Hello

Why is it when I back test a strategy and have Pro Back Test in Tick by Tick switched on, I get a good Optimize Report and a bad Equity Curve?

Do I need to upgrade?

I have attached a file showing the results.

Thank You

op-V-op-report.odt

10/29/2021 at 11:34 AM #180542 quote

robertogozzi
Moderator

Legend

Please attach JPG or PNG files only for pics (TXT files for unformatted text and PDF files for formatted text).
Thank you 🙂

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10/29/2021 at 11:37 AM #180544 quote

robertogozzi
Moderator

Legend

The optimizer doesn’t use Tick-by-Tick mode.

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10/29/2021 at 12:05 PM #180551 quote

GraHal
Participant

Master

See the 1174 in the tick mode column? That is 1174 instances where – in the same bar – TP and SL were both hit … referred to as zero bars.

The Optimiser calculates on TP being hit first, no account being taken of SL during those zero bars 1174 bars.

Your equity curve shows the true result under tick by tick conditions where either TP or SL get hit as price would at each successive tick.

Does that help your understanding?

EDIT /PS

Make TP and SL larger values or optimise for 0 / near zero in the tick column and the backtest results will be closer to the equity curve results.

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10/29/2021 at 12:25 PM #180553 quote

SpreadBetMH
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Saved to JPEG

Thank You

So, Tick Mode is when a Stop/Loss & Take Profit happen within the same Candlestick bar, and the way to avoid that is to use a longer S/L & TP

op-V-op-report-1.odt

10/29/2021 at 2:32 PM #180556 quote

GraHal
Participant

Master

As you say above, yes that is what is meant by the column heading – Tick Mode – in the Optimisation Table.

Tick by Tick refers to … using each individual price tick to determine the result of your coded strategy … just like it would be in real live data.

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