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Dear Mr. Blain,
Here's a response I received from
Metastock support on this issue:
"The below FAQ will explain why the tester if
doing what it is.
Why do I get unrealistic results when testing
the Power Pivots systems?
The Power Pivot systems have predefined settings
for the System Testers
stops tab. The profit target and the max loss
stops do not normally
cause problems, but the trailing stop does. In
8.0, all stops are
checked on the bar the trade is entered. The
trailing stop uses the
highest favorable price during the bar. This
extreme favorable price is
then compared to the entry price to get the
profit. Since the closing
price will seldom be equal to the extreme
favorable price and since the
power pivot system defines 1% as the allowed
movement, this stop is
always triggered on the day the trade is opened.
This gives the
inflated profits from the system. If you edit the system
and disable
the stops and then re-test, you will get more realistic
results."
I hope this helps, have a nice day.
Leon
(Montreal, Canada)
P.S. Happy Canada Day!
----- Original Message -----
Sent: Wednesday, June 29, 2005 8:49
PM
Subject: Re: [EquisMetaStock Group]
System Tester - PP CCI (modified)
Francis
Check each buy and sell one at a time for
accuracy.
Martin Blain
Burlington Ontario
----- Original Message -----
Sent: Wednesday, June 29, 2005 5:55
AM
Subject: [EquisMetaStock Group] System
Tester - PP CCI (modified)
hi, anyone would like to comment on the PP- CCI (Modified) on the
system testers in MS ?
i notcied that the equity curves in testing are like step function.up
and up..!!...no drawdown...when i checked the orders closely, i noticed
the buy and sell profits are in 20-30 cents range of the stock
price........almost 95% win/loss ratio..40-50% profits over 2-3 years data
back test....hard to believe....for US stocks and Aust stocks are the same
observations...
since i have not purchase their Powerpivot sw, not sure if i missed
something here....???
thanks
francis
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