Topic: Separating a Strategy into Long Trades Strat and Short Trades Strat
Here we have a simple strategy on M30. If you scrutinize the chart, you can see that long entries are not adding so much to the balance / equity curve, and especially in the beginning of the period. But on the long run the balance / equity chart shows positive result.
Observe also two parameters:
Ambiguous bars = 1409
Executed orders= 20153.
So if I will separate trades in this Both Directions Strategy in two strategies – Only Long Trades Strategy and Only Short Trades Strategy, you should expect that each of separated strategies will be a mirror of its corresponding cousin in Both Directions Strategy.
Let us employ Long or Short Indicator to filter out trade direction.
Long trades only:
Ambiguous bars=105
Executed orders=9207
Short trades only:
Ambiguous bars=72
Executed trades=10087
Summing of values in short and long versions gives:
Ambiguous bars=105 + 72 = 177
Executed orders= 9207 +10087 = 19294
So amount of Executed order adds to similar value: Long Orders (9207) + Short Orders (10087) = 19294 when Executed orders for Both Direction are 20153.
But amount of ambiguous bars is very different in original chart (1409) and sum of separated charts (177). Why is that?
And the Balance / Equity is totally different. The Short winning curve on Both Directions chart is completely different from its loosing cousin on separated chart. Same for the Long curve.
So I am missing something here in understanding of the inner working process of FSB?
Leon