• Registered: 2012-12-09
  • Posts: 11

Topic: Is the backtesting of this strategy possible?

It seems that backtesting this strategy is not possible, or is it because am a newbie?
It is meant to be a simple logic....I want to enter a trade after a daily candle crosses under/above a 14 EMA.
Then, as long as the price stays under/above the MA, there will be trades on a daily basis.
For example, the price crossed the EMA today downward, then I sold and close at the end of the day (whether profit or loss), then the following day (since the price is still under), I sold again....and close at the end of the day...this continue everyday.... until the price moves above the EMA.
What I have achieved so far is that the once price crosses the EMA, it just triggers the first trade, without continuing to make the trades on daily basis.
Please do you get my point?
I will really appreciate the response of intelligent people on this forum...
Thanks all!!!!!

  • footon
  • footon
  • ◄≡≡≡►
  • Offline
  • Registered: 2009-08-17
  • Posts: 2,924

Re: Is the backtesting of this strategy possible?

[Opening Point of the Position]
Bar Opening
     Enter the market at the beginning of the bar
     Base price  -  Open

[Opening Logic Condition]
Moving Average
     [ A ]   The bar opens above the Moving Average
     Smoothing method  -  Exponential
     Base price  -  Close
     Period  -  14
     Shift  -  0
     Use previous bar value  -  Yes

[Closing Point of the Position]
Bar Closing
     Exit the market at the end of the bar
     Base price  -  Close


http://s8.postimage.org/l0cz2lndt/prcrss.jpg

  • Registered: 2012-12-09
  • Posts: 11

Re: Is the backtesting of this strategy possible?

Thanks Footon for your ast reply...am very grateful!
Please, I noticed that while some bars actually opened and closed the same day with the conditions, others just remained untouched despite being covered within the same conditions....yet they happened to be the most promising bars...but they just stood there unaffected...not participating in the trade.
Thanks again...am very grateful for your time!!!!!!!!!

  • footon
  • footon
  • ◄≡≡≡►
  • Offline
  • Registered: 2009-08-17
  • Posts: 2,924

Re: Is the backtesting of this strategy possible?

Don't understand exactly, please post screenshots of those bars.

5 Reply by wtoalabi (edited by wtoalabi 2012-12-12 03:17:36)

  • Registered: 2012-12-09
  • Posts: 11

Re: Is the backtesting of this strategy possible?

http://s8.postimage.org/l06c9sp1t/7sig.jpg

I actually got your explanation correctly Footon, but face to face with what I wanted, the
result wasnt encouraging.

But thinking along a new line, I hope this will work for me now, and I surely hope that this screenshot will clearly explain my position.

1. I want a position to open after a bar clearly opened and closed above 14 EMA.

2. The trade will continue until there is a reverse case of another position forming just like
the previous, but in an opposite direction. Meaning, the end of a position is followed immediately by the opening of another position, in an opposite direction.

3. This will continue like this no matter the numbers of the bars...even if it is a short one
like the 3rd scenario.

Can we pull this off?

I am grateful for all your efforts.

Thanks.

  • footon
  • footon
  • ◄≡≡≡►
  • Offline
  • Registered: 2009-08-17
  • Posts: 2,924

Re: Is the backtesting of this strategy possible?

[Opening Point of the Position]
Bar Opening
     Enter the market at the beginning of the bar
     Base price  -  Open

[Opening Logic Condition]
Moving Average
     [ A ]   The bar opens above the Moving Average after opening below it
     Smoothing method  -  Exponential
     Base price  -  Close
     Period  -  14
     Shift  -  0
     Use previous bar value  -  Yes

[Closing Point of the Position]
Close and Reverse
     Close all positions and open a new one in the opposite direction


http://s11.postimage.org/kw130i74v/prcrss.jpg