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Tom:
Thanks so much for the clear explaination. I think I have it (I'll
know when I test it tomorrow).
I usually test at 100% and $10,000. For old guys like me, that means I
can do most of the results math in my head.
Harry
--- In equismetastock@xxxxxxxxxxxxx "Tom Sprunger" <tlsprunger@xxxx>
wrote:
> 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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