Ed are you showing us the Kelly Principle ?

Regards, Ton.

  ----- Original Message ----- 
  From: Edward Pottasch 
  To: [email protected] 
  Sent: Wednesday, August 27, 2008 8:59 AM
  Subject: Re: [amibroker] Re: backtest / equity curve



  hi Mike,

  I guess it could but I solved it in a more simple manner. Just used the 
equity curve from the original backtest. So I can put this in a chart below the 
system. When I run the backtest the curves taking profit at 500$/day, 1000$/day 
etc.  are the automatically plotted along side the original equity curve, see 
chart. Clear from the chart is that taking a profit and stop for the day works 
very well for this typical system.

  regards, Ed




    ----- Original Message ----- 
    From: Mike 
    To: [email protected] 
    Sent: Tuesday, August 26, 2008 10:13 PM
    Subject: [amibroker] Re: backtest / equity curve


    Couldn't custom backtester code be written to just set positionsize 
    to zero for all subsequent trades after reaching your daily maximum? 
    That way you would not have to alter your actual trade logic at all. 

    Whenever possible, I prefer to keep my trade logic in its original 
    form, then handle constraints in easily swapped custom backtest code.

    Mike

    --- In [email protected], "Edward Pottasch" <[EMAIL PROTECTED]> 
    wrote:
    >
    > hi Barry,
    > 
    > thanks for your reply. I am close to a solution myself.
    > 
    > I tried something similar as you suggest but the problem I am 
    having is that if the daily target is reached it needs to jump to the 
    next day of intraday data and not jump out the loop entirely. I am 
    close to the solution,
    > 
    > regards, Ed
    > 
    > 
    > 
    > ----- Original Message ----- 
    > From: Barry Scarborough 
    > To: [email protected] 
    > Sent: Tuesday, August 26, 2008 5:06 PM
    > Subject: [amibroker] Re: backtest / equity curve
    > 
    > 
    > Hi Edward,
    > 
    > You can keep track of your daily gain and when that reaches your 
    > threshold block your buy and short signals. For instance you 
    might 
    > use buyPrice and sell price to calculate gain / trade that keep 
    gain 
    > in its own array or static var, I prefer the latter, and just 
    bump 
    > the gain each time a trade is complete. 
    > 
    > buy = buyCondition and gain < threshold.
    > 
    > This way the back tester never sees the additional or potential 
    > trades and will give you better results. Also in back testing if 
    you 
    > use buyPrice, etc., if you are using conditions that occur mid 
    bar, 
    > such as MA cross, then the back tester gives more accurate 
    results. I 
    > had to use explore and dump that to excel to finally get the back 
    > tester to give correct results. Using close of the bar give 
    incorrect 
    > results.
    > 
    > Barry
    > 
    > --- In [email protected], "Edward Pottasch" <empottasch@> 
    > wrote:
    > >
    > > hi,
    > > 
    > > anyone ever do a backtest on intraday data to exit trading for 
    the 
    > day when a certain profit is achieved? In the chart below the 
    > intraday profit / loss curve is shown. I guess I could put this 
    data 
    > in a composite and use the compositie during a more detailed 
    > backtest. Still the coding is pretty difficult since when the 
    daily 
    > profit is achieved you want the backtest to continue for the next 
    day 
    > of intraday data. 
    > > 
    > > Another way to test it would be to just analyze the data below. 
    For 
    > instance if +1000$ is achieved intraday jump to the next day, if 
    not 
    > take the profit/loss value at the close and just add these value. 
    Not 
    > so easy to program or have I been drinking too much liquor lately?
    > > 
    > > Wonder if anyone solved this problem or sees the solution?
    > > 
    > > thanks, Ed
    > >
    >




   

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