Below is an
example of an EUR/USD trade using the Market Entry App starting on July 04,
2013. In the User Parameters, the ‘Direction’ input of the market entry order
is set to ‘Sell’, and the ‘Backtest’ parameter is set to ‘Yes’.
The
‘UseOutputMessaging’ is set to ‘Yes’, which will direct the E-Mail messaging of
events like partial close-outs or trade exit in the backtest mode to the ‘Log’
window of the Strategy Backtester.
User Inputs
for Backtest:
The example
uses a fixed position size of 20 lots, since ‘DynamicRiskManagement’ input is
set to ‘No’. The position is defined with 5 profit taking limit levels, and
each partial position size is set to 20%, i.e. each partial position size is
worth 4 lots.
The initial
StopLoss distance from the entry price is 50 Pips, the first to fourth profit
taking limit levels are set to 30, 40, 50, and 100 Pips, respectively. The
fifth and last limit level, however, is not set, because Stop Trailing using
the ‘BestPrice’ is enabled for the last partial position. The Stop Trailing
will be triggered at a profit level of 150 Pips, and will track the best
closing price of the H1 Ask candles with a fixed distance of 20 Pips.
User Inputs
for the 5-stage profit taking position with Stop Trailing for the last stage:
In the H1
backtest chart, you can see the entry and the final exit through the trailing
Stop. In the hourly candle of 08:00 you only see one close-out instead of the
expected four partial close-outs.
This is not
what one would expect. Looking at the event log messaging, you will see
messages of four partial close out operations at the first four profit taking
limit levels, before the trailing stop will eventually close the fifth partial
position, which represents the end of the trade.
This is,
however, just an issue of data resolution. Remember that the first limit levels
are selected to be relative close to each other. The first three limit levels
are just 10 Pips distant from each other. Remember also that we are looking at
an hourly chart. The first four partial close-out operations must have taken
place within the time of 08:00 to 08:59, which is the period of time
represented by the candle of 08:00 in the chart.
The hourly
candle backtesting chart:
The
close-outs of the first four profit taking limit levels are only visible if you
change the resolution of the backtest chart to one minute m1. Here you can see
the all four close-outs.
Note that
the minute candle of 08:34 has even two close-out operations within its candle.
Minute
candles are the finest backtesting data resolution of the Strategy Backtester,
so it is always a good idea to have a look on minute time frame to be able to
see what the App really does.
The minute
candle backtesting chart:
Limit Entry
App Backtest Example:
The same
backtesting period starting on July 04, 2013 is used for the Limit Entry App,
which uses a price entry level of 1,3010 to open a short position.
In the User
Parameters, the ‘Direction’ input of the market entry order is set to ‘Sell’,
and the ‘Backtest’ parameter is set to ‘Yes’. The desired entry price level is
set to 1,301, which is higher than the initial price level of the backtesting
period.
The
‘UseOutputMessaging’ is set to ‘Yes’, which will direct the E-Mail messaging of
events like partial close-outs or trade exit in the backtest mode to the ‘Log’
window of the Strategy Backtester.
User Inputs
for Backtest:
The example
uses a fixed position size of 20 lots, since ‘DynamicRiskManagement’ input is
set to ‘No’. The position is defined with 5 profit taking limit levels, and
each partial position size is set to 20%, i.e. each partial position size is
worth 4 lots.
The initial
StopLoss distance from the entry price is 50 Pips, the first to fourth profit
taking limit levels are set to 30, 40, 50, and 100 Pips, respectively. The
fifth and last limit level, however, is not set, because Stop Trailing using
the ‘BestPrice’ is enabled for the last partial position. The Stop Trailing
will be triggered at a profit level of 150 Pips, and will track the best
closing price of the H1 Ask candles with a fixed distance of 20 Pips.
User Inputs
for the 5-stage profit taking position with Stop Trailing for the last stage:
Below are
the hourly and minute charts of the Strategy Backtester, where you can again
see the entry and the exit in the hourly chart, and the partial close-outs in
between are made visible in the minute charts only.
The hourly
candle backtesting chart:
As in the
previous example, there is even one minute candle of 08:33 where two close-outs
take place, namely of the first and second profit taking limit levels.
The minute
candle backtesting Charts:
Stop Entry
App Backtest Example:
The same
backtesting period starting on July 04, 2013 is used for the Stop Entry App,
which uses a price entry level of 1,2980 to open a short position.
In the User
Parameters, the ‘Direction’ input of the market entry order is set to ‘Sell’,
and the ‘Backtest’ parameter is set to ‘Yes’. The desired entry price level is
set to 1,298, which is lower than the initial price level of the backtesting
period.
The
‘UseOutputMessaging’ is set to ‘Yes’, which will direct the E-Mail messaging of
events like partial close-outs or trade exit in the backtest mode to the ‘Log’
window of the Strategy Backtester.
User Inputs
for Backtest:
The example
uses a fixed position size of 20 lots, since ‘DynamicRiskManagement’ input is
set to ‘No’. The position is defined with 5 profit taking limit levels, and
each partial position size is set to 20%, i.e. each partial position size is
worth 4 lots.
The initial
StopLoss distance from the entry price is 50 Pips, the first to fourth profit
taking limit levels are set to 30, 40, 50, and 100 Pips, respectively. The
fifth and last limit level, however, is not set, because Stop Trailing using
the ‘BestPrice’ is enabled for the last partial position. The Stop Trailing
will be triggered at a profit level of 150 Pips, and will track the best
closing price of the H1 Ask candles with a fixed distance of 20 Pips.
User Inputs
for the 5-stage profit taking position with Stop Trailing for the last stage:
In the
hourly charts, the entry, the fourth limit level close-out, and the exit of the
Trailing Stop of the fifth and last partial position are well visible.
The
close-outs of the first three limit levels are, however, like in the previous
backtesting examples not visible in the hourly price candle resolution.
Also, the
minute candle of 08:33 shows two close-out operations, namely of the first and
second limit, respectively.
The hourly
candle backtesting charts:
The minute
candle backtesting charts:
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