- ago
When I check "Retain NSF Positions", my strategy produces a much stronger equity curve than when it is not checked. Of course I want the first one to be true, but it looks like the backtest does not enter certain positions when losing signals should be produced. I also get the same phenomenon when I choose "Market Open Next Bar" instead of "Market Close this Bar".

So, in essence, is the first equity curve just a bunch of lucky trades or is there something to it?

First Equity Curve (Retain NSF checked)


Second Equity Curve (Retain NSF unchecked)


Thanks!

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Glitch8
 ( 12.53% )
- ago
#1
It looks like there’s not enough positions in either backtest to draw any statistically significant conclusions.
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- ago
#2
Thank you Glitch. I know this is a loaded question but as a rule of thumb what are the minimum number of positions you deem statistically Significant?
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Glitch8
 ( 12.53% )
- ago
#3
Personally I like to see a few hundred, I typically backtest on large DataSets.
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Cone8
 ( 6.17% )
- ago
#4
QUOTE:
the backtest does not enter certain positions when losing signals should be produced.
But do you understand why?

If you do, great.
If not, here's a video that explains the difference: https://youtu.be/HXA-AetQ3Jk
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