- ago
I am presently looking at trading the equity curve. When I see the normal equity curve in the Backtest Results window, and if I want to only trade a strategy above the moving average I am doing this by a manual process of using my judgement.

However, I can use the position size setting of "Trade the Equity Curve" and use the Configure Position Size. I am trying to match as closely the Backtest Equity Curve using moving average to the settings I use in "Configure Trading the Equity Cuve".

What settings close match this.

I checked the box for "Instead, use Equity / SMA2 Crossings with a period of 50.

That is not the exact settings. What would be the best settings to duplicate the settings for the Backtest Equity Curve.

Here are my settings:



Here I am showing on the left equity curve the standard equity curve for my strategy blown up. I can see from my position size that the deviation for the equity curve starts at around 12/27/22. That is where the moving average is above the equity.

The right equity curve is the same strategy using the Trade the equity curve settings from previous screen shot.

Here is the side by side view of equity curves. The left one is the standard equity curve and the right one is using trading the equity curve. My goal is to get signals when the equity is above the moving average of the equity curve.

One more question: When you are trading the equity curve, how are the open positions being handled. meaning if I have an open position and the equity crosses below, does the position sizer for trading the equity curve give a sell signal to exit, or does it wait until the position is existed.

Thank you,

Larry




Here in red pen is showing the area where I am examining the trade that falls below the equity curve.






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- ago
#1
These setting did not work:
Using a Fast SMA period of 50 and Slow SMA period of 50.

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- ago
#2
QUOTE:
position sizer for trading the equity curve give a sell signal to exit, or does it wait until the position is existed

PosSizers do not give exit signals, they only size entry signals.

QUOTE:
My goal is to get signals when the equity is above the moving average of the equity curve.

Please refer to the Help. "Don't skip but adjust..." It is documented there.
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- ago
#3
I ended up testing "trading the equity curve with a C# WealthLab strategy program". I am able to verify entry and exit signals and validate when trades are given.

Thank you,
Larry
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