Close at Stop Huge Negative

 

Hi,

I have been testing a strategy based on MACD and two moving averages 20 and 200 for a couple days now. I get steady positive results when back testing but the last transaction "Close at Stop" is always a huge negative.

Any ideas as to why this might be happening?

Thank you

D.

 
DmitriFX:

Hi,

I have been testing a strategy based on MACD and two moving averages 20 and 200 for a couple days now. I get steady positive results when back testing but the last transaction "Close at Stop" is always a huge negative.

Any ideas as to why this might be happening?

Thank you

D.

Hi DmitriFX,

In the Strategy Tester....the last open trade is always closed out...usually for a loss.

The trade did not have time to complete...and the tester closed for a loss.

Run the tester again with a earlier date to miss that trade...or a later date to give that trade time to close properly.

These are a way around the "closed last trade"...and you keep your test results free of that final trade with a big loss...

Hope this helps,

Robert

 

Thank you Robert! I did change the closing date for testing to make sure there are no open trades and it worked.

Reason: