• Popov
  • Popov
  • Lead Developer
  • Offline
  • From: Bulgaria
  • Registered: 2006-11-30
  • Posts: 7,976

Topic: Question Concerning the Software

To Whom It May Concern,

First, I would like to state that I think that the software that you have created is marvelous. It is great that you have some historical quotes in order to be able to test some ideas before going live. I also think that it is great that the software is free. However, there are some things that concern me.

I was wondering about the accuracy of the software. I was attempting to test the Parabolic Stop and Reverse Time System and found the the settings on the back tester regarding the frequency of the reversals do not exactly match those found with my current broker. I seem to find this problem with inconsistency everywhere that I look. In addition, I have noticed that after a test has been made, the simulator does not start in the exact spot it is supposed to start and sometimes it excludes some of the reversals altogether. Finally, with regard to the leverage settings, there is no way that you can trade 400:1 on the day chart and still be able to get a stop loss of 250 pips.

Furthermore, I wanted to test a strategy that I saw on another foreign exchange site concerning the Average Directional Index and the Parabolic Stop and Reverse Time System at settings 50 and 0.02 ,0.2. The entry signals are supposed to be when the DI+ and DI- change and crossover each other. However, on the simulator no such option exists so the best one can do is to use when the Average Directional Index is rising. However, this is inadequate. I have seen some information posted concerning this problem on one of the forums and even downloaded a new copy of the software but there still is not option in order to test this strategy.

Finally, why is there no option to test more currency pairs and why not as a whole portfolio? In my opinion, it would be vastly more useful to be able to test an entire portfolio rather than just one currency pair. In this fashion, one could see the maximum draw downs for an entire portfolio of twenty pairs or even the four that are currently available. Basically, one could see how all of them interact together.

Anything that you could do to help resolve these issues would be greatly appreciated. Thank you for your time and consideration in this important matter.

Sincerely,

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Hello dear user,

Let start:

I was wondering about the accuracy of the software.

We think Forex Strategy Builder is probably the most reliable backtester in the market today.

I was attempting to test the Parabolic Stop and Reverse Time System and found the the settings on the back tester regarding the frequency of the reversals do not exactly match those found with my current broker.

Parabolic SAR has been thoroughly tested many times. It is unlikely to have an issue in the algorithm. Its source code is listed in the website. We have compared the values of our PSAR with the PSAR shipped with MetaTrader and they have worked in the same way.
In order to receive equal results you have to use same historical data.

I have noticed that after a test has been made, the simulator does not start in the exact spot it is supposed to start and sometimes it excludes some of the reversals altogether.

After a breakout PSAR starts from the previous Top or Bottom. Please explain where exactly the simulator is supposed to start. (Send the strategy and note the exact bar. Use our historical rates.)

Finally, with regard to the leverage settings, there is no way that you can trade 400:1 on the day chart and still be able to get a stop loss of 250 pips.

Why not? I cannot see a problem. Please explain what you mean?


The entry signals are supposed to be when the DI+ and DI- change and crossover each other. However, on the simulator no such option exists so the best one can do is to use when the Average Directional Index is rising.

[Opening Logic Condition]
Directional Indicators
     The ADI+ crosses the ADI- line upward
     Smoothing method  -  Exponential
     Period  -  10
     Use previous bar value  -  Yes

Finally, why is there no option to test more currency pairs and why not as a whole portfolio?


Go to menu “Market” → “Edit Instruments”. You can add unlimited number of symbols there.

Popov's Website

  • Registered: 2006-12-30
  • Posts: 23

Re: Question Concerning the Software

Furthermore, I wanted to test a strategy that I saw on another foreign exchange site concerning the Average Directional Index and the Parabolic Stop and Reverse Time System at settings 50 and 0.02 ,0.2. The entry signals are supposed to be when the DI+ and DI- change and crossover each other. However, on the simulator no such option exists so the best one can do is to use when the Average Directional Index is rising. However, this is inadequate.

1. Regarding the Parabolic SAR there is a small difference between MetaTrader and Forex Strategy Builder. I noticed that MT doesn't plot the PSAR breakout point. It plots the new starting point instead of it. At the same time FSB plots the breakout point. The difference is only what exactly point is displayed. The ending and starting point of PSAR are equal in both platforms.  Para me, it's better to be shown the breakout point as in FSB.

2. Probably this user is confused by the time of the signal when the ADI crossover occurs. I was also wandered at the beginning when I tried to understand the logic. The confusion comes from the fact the signals are executed one bar later. I found that this is true when the indicator has "Use previous bar value" check in its parameters. I understood that this is one of the best features of FSB. It's must be the same as the rule "Trade on the next bar after the signal" that the experienced traders implement in the EAs for backtest.