Number of trades changes

Forums ProRealTime English forum General trading discussions Number of trades changes

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by avatarJS.
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  • #208584

    Hello,

    I have noticed that when I do a backtest, the total number of trades executed changes when I change the take profit and stop loss variables.

    How does this happen?

    The conditions remain the same for entry, shouldn’t the total number of trades be the same but the profit/loss ratio change?

    I’m confused!

    #208593
    JS

    Hi Andy,

    By adjusting your SL and TP you influence the duration of your positions… When you make the SL and/or TP smaller, your position will be stopped earlier because in general tight SL and TP are hit earlier than wide SL & TP…

    When your position is stopped, a new position will be taken at the next opportunity… the number of trades will therefore increase…

    Your Profit/Loss ratio will only change slightly but that is a long story about probability percentages and average profits and losses…

    1 user thanked author for this post.
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