I'm relatively new and I wanted to know why I always get a series of huge losses at the end of strategy tester. I always notice this on testing different EAs, they all seem to have a series of huge losses and stop out all at around the same date on different forex pairs which is very strange. Why is this?
thanks in advance for any help.
It is open trades are forced to close just because of your backtesting is stopped.So, in some cases - this is 'floating drawdown on open trades'.
thanks for replying sergey. i don't know if it is that because they all seem to lose all the capital of the account at that point. thanks anyway.
@Sergey Golubev answered you correctly! At the end of a back-test, all currently opened trades are forcefully closed! In other words, it is the currently floating draw-down, at that moment at the end of the back-test, just as he explained.
Don't just ignore or discount another user's explanation, simply because you don't understand it, especially a moderator that has much more experience than you have.
EDIT: These huge losses/draw-downs are usually a sign that the EA is of "bad quality", and using Martingale, Grid or any such mechanisms that can easily "blow-up" accounts.
i did not discount anything. ''i don't know if it is that'' is not a discount statement, it simply means based on the fact that i the trades were not just ''forcefully close'' at floating, they all drained the account as in near zero. may be a more accurately, i should have asked why too many positions were opened at the end of the tester because regradless of the different EAs I've tested, the same thing happens.
''EDIT: These huge losses/draw-downs are usually a sign that the EA is of "bad quality", and using Martingale, Grid or any such mechanisms that can easily "blow-up" accounts.''
...now who's assuming? i did not tell you the EAs did any grid or martingale so you need to take your own advice and stop being so arrogant in your assumptions such that you reply in such a condescending manner it almost looks like projection. i don't know why you experience people always try to tear down newbies like some sort of perverse pessimism.
No one is attacking you or insulting you in any way! No one was condescending or arrogant!
If you believe to know better and wish to ignore the answers given to you by those more experienced on the matter, then please be my guest and do as you wish!
It certainly will not worry us in the least!