Dear all, I am encountering a problem in checking some results. In the following backtest, the commission used was zero. Initial capital 200, margin factor 500.
After the first operation, I should have equity of 210.39, correct? But upon checking the curve, I see it is at 210.24. The same happens after the second operation. Where am I going wrong in the calculation?
After the first operation, I should have equity of 210.39, correct? But upon checking the curve, I see it is at 210.24. The same happens after the second operation. Where am I going wrong in the calculation?
Rename
Re: Margin Factor 500. Why wouldn't you configure the Forex symbol in Tools > Markets & Symbols > Symbols with a specific margin value?
@Eugene, futures margin isn't a factor here because this is apparently set up as a cash trade only. That said, I don't understand why anyone would use a non-futures margin factor of 500 for any hypothetical backtest. (I don't even care, because it's not a factor here.)
My first guess is that Margin Loan rate is non-zero in the Backtest Preferences.
My second guess is that you're not using the actual data at full precision in the calculation, and instead relying on the displayed, rounded numbers.
QUOTE:Insufficient information, so we just have to guess.
Where am I going wrong in the calculation?
My first guess is that Margin Loan rate is non-zero in the Backtest Preferences.
My second guess is that you're not using the actual data at full precision in the calculation, and instead relying on the displayed, rounded numbers.
Yes, it was the margin loan, and I'm doing this to simulate leverage. Is there a better way to do this? Thank you very much for the help.
You're simulating it correctly, it's just that I've never heard of Forex leverage greater than 100:1, and usually it's more like 40:1.
Who's your forex broker?
Who's your forex broker?
Pepperstone.
Your Response
Post
Edit Post
Login is required