Hi Guys i am fairly new to all this so please forgive me if i have made any amateur mistakes.
I have been messing around creating trading systems based on my Indicators and came across this –
It will buy when the MACD is above 0 and Green line is above Red & Sell when below 0 and Red line above Green.
I use a 10 Pip trailing stop and the time frame used on is daily
When back testing i get unbelievable results – for example
in the past year on the Eur/Aud
Number of trades – 169
Winning Trades – 147
Losing – 22
Total gain – £10590
this is based on £1 per a pip with a 2 pip spread
What am i doing wrong? surly this back test can not be right?
The code is below
//-------------------------------------------------------------------------
// Definition of code parameters
DEFPARAM CumulateOrders = False // Cumulating positions deactivated
// Conditions to enter long positions
indicator1 = MACDline[8,26,9](close)
indicator2 = ExponentialAverage[9](MACDline[8,26,9](close))
c1 = (indicator1 > indicator2)
indicator3 = MACDline[8,26,9](close)
c2 = (indicator3 >= 0)
IF c1 AND c2 THEN
BUY 1 PERPOINT AT MARKET
ENDIF
// Conditions to enter short positions
indicator4 = ExponentialAverage[9](MACDline[8,26,9](close))
indicator5 = MACDline[8,26,9](close)
c3 = (indicator4 > indicator5)
indicator6 = ExponentialAverage[9](MACDline[8,26,9](close))
c4 = (indicator6 < 0)
IF c3 AND c4 THEN
SELLSHORT 1 PERPOINT AT MARKET
ENDIF
// Stops and targets
SET STOP pTRAILING 10
>> Please update your country flag in your profile. Thank you 🙂 <<
Hi Craig, your post was in the Library, I believe that my
button is still not as clear as I thought .. 🙂
I believe you made your backtest with PRT 10.2? This unbelievable result is due to what we call here the “0 bar” problem that have been solved with the
new tick by tick backtest engine in version 10.3. In your strategy, the trailing stop give priority to takeprofit and not stoploss, so the whole strategy gain will always be superior to its loss.
There are many topics and discussions about it here. I’m sorry but your backtest is not accurate.