Topic: Equity Chart Error

I am having a strange effect when changing the Vertical Shift on the "Previous High Low" screen. All I need to do is change the Vertical Shift by .1 pip and the equity flips from profit to loss. Screen shots attached. It seems to cycle as I go up and down with the vertical shift.


http://s4.postimage.org/7r07810/Snap_2011_07_01_20_52_47_006.png

http://s4.postimage.org/7snqkis/Snap_2011_07_01_20_51_24_004.png

Re: Equity Chart Error

.. other screen shot

http://s4.postimage.org/8up3jvo/Snap_2011_07_01_20_52_09_005.jpg

Re: Equity Chart Error

Why do you think this is an error.

Most probably your strategy is over-optimized. It shows profit with exactly defined values of indicator parameters but if a small deviation occurs, the strategy fells.

Re: Equity Chart Error

Hi Popov

I wondered about that at first but the strategy is not highly optimised. It simply goes long at the previous low plus the vertical shift. If I change the vertical shift parameters whenever the value ends in an 8,9, or 0 then there is a profit of around $20 - 30,000 but if the last number ends in a 1,2,3,4,5,6 or 7 there is a hugh loss of around $50- 60,000. So at a vertical shift of 70 my profit is $20,978 but at 71 it flips to a loss of $56,098. If I then increase the shift in increments of 1 to 78 it then  flips back to a $25,838 profit. Then at 81 it flips back to a $69,918 loss.

Re: Equity Chart Error

I don't think that there is an error in the backtester. You can check the deals using the Journal records or the chart.

The huge number of ambiguous bars is a problem in your case. The backtest of this strategy is not reliable enough. You have to add additional filters or to change the entry logic.

Re: Equity Chart Error

Thanks, I'll check that.