Initial Stop result

[ahhill]

I was hoping for some logical assistance. I have been testing a new system. When I do a simulation using an Equal $ Units model I get result A (LongInitialStop & ShortInitialStop both = zero). Now as I'd prefer to use a Fixed $ Risk model when trading I have initially set the LongInitialStop = LongEntryPrice - 0.99 * LongEntryPrice and the
ShortInitialStop = ShortEntryPrice + 10 * ShortEntryPrice
(note: theory of such broad parameters being defined in the initial stop was so initially I'd pick up all trades and thus the same result A so that then I could resimulate using differing money management ie Fixed $ Risk)

Confusion = by defining the initial stops as above the simulation results in the same total number of trades, the result on the Long side of the system is identical BUT the short side of the system returns a significantly different result with many more losers than winners even though it picks up the same number of trades as when initial stop is set to zero?

No doubt I'm overlooking something simple and look forward to some guidance from the forum.

Cheers .....Andrew





ExtFml( "TradeSim.Initialize");
ExtFml("TradeSim.SetStartRecordDate",1,7,1998);
ExtFml("TradeSim.SetStopRecordDate",1,7,2003);
ExtFml("TradeSim.EnableProtectiveStop", 0);
ExtFml("TradeSim.SetExitPriceToInitialStop");
ExtFml("TradeSim.RecordTrades",
"AASYS8",
Short,
ShortEntryTrigger,
ShortEntryPrice,
ShortInitialStop,
ShortExitTrigger ,
ShortExitPrice ,
CONTINUE);

[David Samborsky]

Hello

Did you actually mean

ShortInitialStop = 11 * ShortEntryPrice

or did you really want

ShortInitialStop = 1.1 * ShortEntryPrice

[ahhill]

Hi David

I had set the initial stop at 11*ShortEntryPrice intentially so as to simulate a scenario where I could pretty much be guaranteed that the stop would NOT be triggered - theory was that this would allow me to compare and hopefully get the same results as had I set the initial stop to zero using an EqualDollarUnits simulation. As mentioned in my initial post, the theory worked on the Long side but was very different on the Short side so I am still a little in the dark.

Any suggestions?
Cheers ...Andrew

[David Samborsky]

If you don't want protective stops on the short side just take out the line

ExtFml("TradeSim.EnableProtectiveStop", 0);

before the second call to the RecordTrades function.

You can then assign 0 to the InitialStop