Another thing to keep in mind, is that if working with daily bars, and allowing SL/TP on the same bar, it is impossible to know which one hit first - the stop or the limit. In other words, as I understand it, we are putting a "stop entry" order at Bar Open + 100 and Short stop entry and Bar Open -1 00 - so, this order can be filled, and immediately go down to hit the stop loss and then go back up (40 pips or more) and hit the profit target - but since FSB is only using daily bars in this case, it will consider the profit target as a success - unless I completely misunderstood the strategy or how FSB works.

FSB do not calculate correctly this strategy. Seems the bar interpolating algorithm of the backtester in this example takes the TP levels only when both SL and TP are in the bar limits.

Do not use this logic for real trading

See this example. The logic is similar, but the test is 100% reliable. http://forexsb.com/forum/viewtopic.php?pid=207#p207

Now, I took the very same logic, and recreated it in a scripting language, in a different builder and the results were completely different, and very bad.

Since the system is simple, it was easy to reproduce it - so, I cant help but get the feeling that either the backtesting engine has some inaccuracy issues, or that the data in FSB is inaccurate.

Another thing to keep in mind, is that if working with daily bars, and allowing SL/PT on the same bar, it is impossible to know which one hit first - the stop or the limit. In other words, as I understand it, we are putting a "stop entry" order at BarOpen+100 and Short stop entry and BarOpen-100 - so, this order can be filled, and immediately go down to hit the stop loss and then go back up (40 pips or more) and hit the profit target - but since FSB is only using daily bars in this case, it will consider the profit target as a success - unless I completely misunderstood the strategy or how FSB works.

Now - in addition to the above, that I would love to discuss - may I ask what is the source of the data? Is it a specific broker, or is it aggregated?

P.S. I also recreated the EURUSD 1 hour strategy (the one with MACD, Momentum, ADX and BB) and the results were not good also.

Open long at the up band means exactly that. When the price reaches the up band we open a long position, and if it reaches the down band we open a short one.

A: The testing period is as long as the history data - some bars ( needed for calculation of the first value of the indicators. Example: for Moving Average(21) - 21 bars). You can see in the top right statistic windows how much exactly are the testing bars.

A: No, we are not closing at the end of the period. We are placing stop/limit orders GTC (Good till Canceled). The closing may be at the next bar.

1. you did not clearly state how long u tested the system to give a net profit of +6000

2. U did not state whether  to close the trade at the end of the trading day(that is whether we are in profit or not).

tks.

What this means:
If the price can rises/falls 100pips we hope it will continue 20 pips more.

How to test:
Set in the Forex Strategy Builder
like in the image:

What is this:

Steady Bands is an indicator that places two bands around a moving average. If we set it with period of 1 and base price - opening of the bar, we have exactly the bar opening. The margin of 100 pips sets the bounds 100 pip far alway of the central MA (in this case price Open).

Closing point is either on +20pips take profit Limit or at -20pips stop loss.

This is a very simple logic, but looks it works good.

Forex Strategy Builder V 2.4.0.0
Strategy name: Stop Limit
Exported on: 4/9/2007 7:17:25 PM

Market: EURUSD 1 Day
Spread: 4 pips
Swap Number: 1 pip

Balance: 6253 pips
Minimum account: -282 pips
Maximum drawdown: 282 pips
Time in position: 33 %

The same direction signal - does Nothing
The opposite direction signal - does Nothing

[Opening point of the position]
Steady Bands
     Open long at the Up Band
     Smoothing method  -  Simple
     Base price  -  Open
     MA period  -  1
     Margin  -  100
     Use previous bar value  -  No

[Closing point of the position]
Stop Limit
     Stop  -  -20
     Limit  -  20