Can someone tell me why this happens in backtesting...

[munymuny]

Hi All,

If you look at the link below you will see a pass on some backtesting I have been doing. Scroll all the way to the bottom and you will see 3 closed trades at the end killing my profits.:confused::confused:

http://www.cjbarnaby.com/faps/Real.htm

Can someone tell me if that has only happened because of the end of the test happening and the software closing out and really should be ignored?? I am curious as this has bothered me thinking I need to put trailing stops in to reduce my losses.

Thanks for your time.
MM

[Earl]

Hi All,

If you look at the link below you will see a pass on some backtesting I have been doing. Scroll all the way to the bottom and you will see 3 closed trades at the end killing my profits.:confused::confused:

http://www.cjbarnaby.com/faps/Real.htm

Can someone tell me if that has only happened because of the end of the test happening and the software closing out and really should be ignored?? I am curious as this has bothered me thinking I need to put trailing stops in to reduce my losses.

Thanks for your time.
MMyour lot size is to big. are you using auto lots????...or adjust your LRR % try that and then post your results again...lets see if that works for you.

no one wants a blowout:eek:

[munymuny]

Hi Earl,

Yes lot size = 0 and LRR = 1.5

I am just curious as it seems that when backtests reach their end of test period do they just close the orders off?

Is that the way the backtest programs closes?

Thanks
MM

[^eagle^]

Hi Earl,

Yes lot size = 0 and LRR = 1.5

I am just curious as it seems that when backtests reach their end of test period do they just close the orders off?

Is that the way the backtest programs closes?

Thanks
MM

Yes that is how the back test closes but at the same time those trades would be closed out on the fist of december so your reqalized profit starting in december would be very close to the actual amount.

[munymuny]

Thanks Eagle... so these settings are reasonable for a years trading. Of course one would be pulling profits at least monthly which may minimise some of those downward drifts.

MM