forex software

Create and Test Forex Strategies

forex software

Skip to forum content

Forex Forum

Forex Software, Forex Strategies, Expert Advisors Generator

You are not logged in. Please login or register.


Forex Forum → Forex Strategies → Is This Strategy Able to Be Tested?

Pages 1

You must login or register to post a reply

RSS topic feed

Posts: 14

Topic: Is This Strategy Able to Be Tested?

Greetings, the following strategy has many followers, all claiming they are very successful with it. I cannot figure out how to program this into the strategy tester as it uses three (3) moving average crosses. Can you examine the below and let me know if/how I can test this strategy?

Thank you. Here it is:

THE POURIA METHOD

period: 85 method: (linear Weight) apply to: (low) color: red
period: 75 method: (linear weight) apply to: (low) color: red
period: 5 method: (expodential) apply to: (close) color: yellow

SHORT: when the yellow line crosses the 2 red lines downward
LONG: when the yellow line crosses the 2 red lines upward

STOP LOSS: 14 pips the most <--- I doubt if there is any loss

Here are the targets:

AUDJPY M30 15pip <---- get out 15pip profit
NZDUSD 1H 25pip
USDCAD H1 20pip
EURGBP H1 10pip
USDJPY M30 15pip
GBPUSD m30 20pip
USDCHF M30 10pip
EURCHF H1 15pip
AUDUSD m30 10pip
EURJPY m30 15pip
CHFJPY 1H 15pip
CADJPY m30 20pip
EURUSD m30 15pip

2 (edited by ccjuce 2007-08-08 23:48:12)

Re: Is This Strategy Able to Be Tested?

Forex Strategy Builder v2.5.2.0
Strategy name: New
Exported on: 8/9/2007 1:40:19 AM

Market: EURUSD 15 Minutes
Spread: 4 pips
Swap Number: 1 pip

Intrabar scanning: Not accomplished
Interpolation method: Pessimistic scenario
Ambiguous bars: 0
Tested bars: 19913
Balance: -1023 pips
Minimum account: -1023 pips
Maximum drawdown: 1023 pips
Time in position: 72 %

A same direction signal - Does nothing
An opposite direction signal - Reverses the position  <----

[Opening point of the position]
Bar Opening
     Enter the market at the beginning of the bar
     Base price  -  Open

[Opening logic condition]
Moving Averages Crossover
     The Fats MA crosses the Slow MA upward
     Base price  -  Close
     Fast MA method  -  Exponential
     Slow MA method  -  Weighted
     Fast MA period  -  5
     Slow MA period  -  85
     Fast MA shift  -  0
     Slow MA shift  -  0
     Use previous bar value  -  Yes

[Opening logic condition]
Moving Averages Crossover
     The Fats MA crosses the Slow MA upward
     Base price  -  Close
     Fast MA method  -  Exponential
     Slow MA method  -  Weighted
     Fast MA period  -  5
     Slow MA period  -  75
     Fast MA shift  -  0
     Slow MA shift  -  0
     Use previous bar value  -  Yes

[Closing point of the position]
Stop Loss
     Exit at the Stop Loss level
     Stop Loss  -  -14


It seems the MA has to based on a same price (In this case - Close)

Re: Is This Strategy Able to Be Tested?

Thank you very much. I have gotten everything programmed in as you indicated above, however I cannot seem to add the correct take profit targets as well as the stop losses in. For instance, the EUR/USD target, according to the rules, is 15 pips. How do I add that in to the strategy? Thank you again.

p.s. Is this wonderful software going to remain free or how will it be paid for?

Re: Is This Strategy Able to Be Tested?

I have used the crossing logic into the previous example. This means that the fast MA has to cross both slow MA into a single bar to raise a signal.

Here I use "higher" logic

[Opening logic condition]
Moving Averages Crossover
     The Fats MA is higher than the Slow MA
     Base price  -  Close
     Fast MA method  -  Exponential
     Slow MA method  -  Weighted
     Fast MA period  -  5
     Slow MA period  -  85
     Fast MA shift  -  0
     Slow MA shift  -  0
     Use previous bar value  -  Yes

[Opening logic condition]
Moving Averages Crossover
     The Fats MA is higher than the Slow MA
     Base price  -  Close
     Fast MA method  -  Exponential
     Slow MA method  -  Weighted
     Fast MA period  -  5
     Slow MA period  -  75
     Fast MA shift  -  0
     Slow MA shift  -  0
     Use previous bar value  -  Yes

The signal will be raised when fast MA drops below / above both slow MA

Re: Is This Strategy Able to Be Tested?

For using stop loss and take profit exit you can set Exit slot to "Stop Limit" indicator

[Closing point of the position]
Stop Limit
     Exit at Stop Loss or at Take Profit level
     Stop Loss  -  -14
     Take Profit  -  15

Re: Is This Strategy Able to Be Tested?

Ok that is great, I am just wondering how to add in another exit logic, that of the required number of pips mentioned in the rules for the profit target. On my version of the software the next "exit logic" button is greyed out and I cannot enter the profit target.

Re: Is This Strategy Able to Be Tested?

You are talking about "close logic conditions". They are allowed when the close slot is "Bar Closing" and serves as a triggers - the first fullfiled condition triggers exit at the bar closing price.

Re: Is This Strategy Able to Be Tested?

OK I see, got it. Now my only problem is that the balance equity chart went completely blank. How do I get it to calculate and report the strategy results?

Re: Is This Strategy Able to Be Tested?

Too strict entry logic maybe. There is no open position for all the bars data. Remove some of the entry filters or check the logic.

Re: Is This Strategy Able to Be Tested?

I put in 4 entry logics. One when 5 crosses 85 up, and one when 5 crosses 75 up, since 5 is supposed to cross both and then entry is triggered on next bar open. Same with short. 5 crosses 85 down, and 5 crosses 75 down. I think I have this wrong somehow. How can I get the entry only when 5 crosses both 85 and 75 up (for long) and down (for short)?

Re: Is This Strategy Able to Be Tested?

The developers promise the program will stay free for using. (I hope)

Re: Is This Strategy Able to Be Tested?

Do not set logic for the short entry. The program makes this automatically. Think for the long positions only. The other is mirrored.

Re: Is This Strategy Able to Be Tested?

OK so if I understand correctly, the results presented to me are the backtester taking both long and short positions when the MA's crossover correctly (5 crossing 75 and 85 up for long, and 5 crossing 75 and 85 down for short)? Even though I have not given that input as an opening logic (I only gave longs as the opening logic condition). Is this correct?

Re: Is This Strategy Able to Be Tested?

Ok.
"Fast MA crosses Slow MA upward" gives a long signal when fast becomes greater then slow and a short signal when the fast drops below the slow MA.
Forex Str. Builder acts symmetrically when backtesting.  So, we need to set the long logic only.

Posts: 14

Pages 1

You must login or register to post a reply

Forex Forum → Forex Strategies → Is This Strategy Able to Be Tested?

Similar topics in this forum