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Harry, answers below
>
> Could you let the rest of us know how the Ref() function solves the
problems you mentioned about 100% Equity in the System Tester?
First a quick refresher.
The system tester calculates a signal. Then it passes the signal to the
Broker module.
The broker module calculates the number of shares it can buy based on the
price on the signal day, and typically tries to buy them on the next day.
If the price the next day is > the price on the signal day it can't buy and
you miss the signal.
So, what we need to do is make sure the signal price and the Buy (Sell)
price are the same to avoid missing signals.
Two ways to do.
1. set to enter on close on day of signal. Here the signal price (usually
close) = buy price and you miss no trades.
2. use Ref() function. This is more realistic because you can enter on the
next bar. What happens here is that the tester does no recognize the signal
to be true on the entry bar because you are always referencing one bar back.
But on the next bar when it looks back it sees you have a valid signal. So
now it calculates how many shares to buy. If you have delay set to 0, the
voila! The signal price = the buy price and you always get filled
correctly.
The Tester uses the same price field to calculate # shares as it does to buy
them.
So, a realistic test is to buy on the open after the bar of the signal.
So set your properties to buy/sell on open with 0 delay.
Then use Ref() as below
x:= enter condition; {this is what you want for signal, eg Cross(a,b)}
Enter:=Ref(x,-1);
Enter
What we are doing is getting around the problem of the tester by using the
way it works to do what we want to do and it should be doing anyway.
The % of Equity is up to you. Doesn't matter. Pick whatever you want. I
like to start with a nice round number like 1000 and use 100% so I can see
how the return compounds.
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