Create and Test Forex Strategies
This shows you the differences between two versions of the page.
Both sides previous revisionPrevious revisionNext revision | Previous revisionLast revisionBoth sides next revision | ||
fsbpro_guide:comparator [2014/11/08 11:05] – yavor | fsbpro_guide:comparator [2014/11/08 11:47] – Miroslav Popov | ||
---|---|---|---|
Line 3: | Line 3: | ||
{{: | {{: | ||
+ | The **Method Comparator** calculates a strategy by using different interpolation methods and shows calculated balance lines on a common chart. | ||
+ | The comparator’s goal is to give a full idea of the strategy performance. Ultimately, you are looking for a strategy without ambiguous bars. When there are no ambiguous bars, all interpolation methods show the same result. In such a case, the method comparator is not of great use. However, a strategy without ambiguous bars might be hard to create and in the end, you will want to make use of the comparator. | ||
===== 1. Interpolation Methods ===== | ===== 1. Interpolation Methods ===== | ||
- | FSB Pro comes with five interpolation methods: pessimistic, | + | FSB Pro comes with five interpolation methods: pessimistic, |
+ | You can enable and disable methods from the check boxes that are near to their names. | ||
- | You can enable and disable methods from the check boxes that are near their names. | + | On the left side you can select |
- | On the left side you can select the methods that you want to calculate and when you hit the “Start” button below, FSB Pro will show you the new chart on the right. | + | **Pessimistic** – This method will choose such a sequence of making the orders, in which the strategy will have the least possible result. For example, if you have an open position and in the range of the same bar, you have set a take profit and a stop loss orders, and they are both available in this bar. If you are using the pessimistic method, the strategy will directly execute the stop loss order. The goal of this method is to display the safest |
- | + | ||
- | **Pessimistic** – This method will choose such a sequence of making the orders, in which the strategy will have the least possible result. For example, if you have an open position and in the borders | + | |
**Optimistic** – This method aims to display the best possible result. If we take the example from the previous paragraph and apply the optimistic method, the backtester will go directly to the take profit order, to make sure the strategy has the best result possible in this bar. | **Optimistic** – This method aims to display the best possible result. If we take the example from the previous paragraph and apply the optimistic method, the backtester will go directly to the take profit order, to make sure the strategy has the best result possible in this bar. | ||
- | **Nearest** – The nearest method will execute the order that is closer to the current price. | + | **Nearest** – The nearest method will execute the order that is closer to the current price. |
- | **Shortest** – Executes the orders in such a way, so it creates the shortest possible route between the orders. It uses the low and high prices of the bar. +++ | + | **Shortest** – Executes the orders in such a way, so it creates the shortest possible route between the way points of the bar - Open, High, Low, Close and all orders in the range. |
- | **Random** – When there is not enough data to know which order the backtester should execute first, it will execute the orders in a random fashion. If an order is nearer to the current price, | + | **Random** – When there is not enough data to know which order the backtester should execute first, it will execute the orders in a random fashion. If an order is nearer to the current price, |
<WRAP center round info 90%> | <WRAP center round info 90%> | ||
Line 27: | Line 28: | ||
The answer is “No”. There are cases where the pessimistic method would not show the lowest possible result, and where the optimistic method would not show the highest. This happens because of something similar to “curve-fitting”, | The answer is “No”. There are cases where the pessimistic method would not show the lowest possible result, and where the optimistic method would not show the highest. This happens because of something similar to “curve-fitting”, | ||
</ | </ | ||
- | |||
**Mean line** – shows the average of all interpolation methods. | **Mean line** – shows the average of all interpolation methods. | ||
Line 38: | Line 38: | ||
</ | </ | ||
+ | ===== 2. Comparator Chart ===== | ||
+ | The comparator shows calculated balance lines on a common chart. You can visually compare and evaluate the lines. | ||
- | ===== 2. Comparator Chart ===== | + | The program shows Random method results in a colored area between two bands. The upper band is the test with the highest net balance. The lower band respectively is the balance line of the test with the lowest net balance. There is a mean line between both bands. |
+ | |||
+ | You can easily distinguish the mean balance line because the program plots it bolder. | ||
+ | ~~DISQUS~~ |