What is a tester's Grail? - page 12

 
George Merts:

What do you mean? Without locking - everything is done exactly the same, with reopening. Absolutely any TS with locking can be converted into a TS without locking, and the Equity curve will be exactly the same, the deposit load, spreads, everything will be identical.

Locking has only one advantage - it is visually convenient for manual trading. Something like a "note" - "there was a losing position here. But from the viewpoint of TS - there is no difference - whether to place a lock and then open it, or to close a position and then re-open it. However, in the case of locking for a few days - you pay an extra swap (compared to reopening).

i.e., if you close an order and put it into the lock, it will look different in your test. i can say a lot about losing, but the lock gives you an illusion that all is not lost yet and you can bail out, which many traders take at face value when they create a lock position, rather than close it. i also tell many traders that closing and the lock are the same thing, but they feel more comfortable creating a lock than closing a position.


Respectfully.

 
Andrey Kisselyov:
i.e., if you close an order and put it into the lock, it will look different in your test. i can say a lot about losing, but the lock gives you an illusion that all is not lost yet and you can bail out, which many traders take at face value when they create a lock position, not when they close it. i also tell many traders that closing and the lock are the same thing, but they feel more comfortable creating a lock than closing a position.


With respect.

Yes, there will be a difference in the balance sheet, but the balance sheet is a completely uninformative characteristic which is unclear as to where it applies at all.

Only Equity is a real reflection of available funds, and only the Equity curve is a real reflection of trading. Therefore, locking only makes sense as a convenient "reminder", for which you pay an extra swap. It does not make more sense locking.

 
George Merts:

Yes, there will be a difference in the balance sheet, but the balance sheet is a completely uninformative characteristic which is unclear as to where it applies at all.

Only Equity is a real reflection of available funds, and only the Equity curve is a real reflection of trading. Therefore, locking only makes sense as a convenient "reminder", for which you pay an extra swap. There is no more point in locking than that.

This is your understanding, the understanding of the bulk of the population and "grief traders" I described to you above.

with respect.
 
George Merts:

Yes, there will be a difference in the balance sheet, but the balance sheet is a completely uninformative characteristic which is unclear as to where it applies at all .

Only Equity is a real reflection of available funds, and only the Equity curve is a real reflection of trading. Therefore, locking only makes sense as a convenient "reminder", for which you pay an extra swap. There is no more point in locking than that.

I agree about the balance.

I agree with you on equity - it's getting warmer, but not yet hotter.

 

Equity only becomes informative in relation to Balance. Balance is the current baseline in relation to which Equity can be said.

Isn't it clear?

You have the current Equity=1200. Is it a lot or not? Without knowing the current Equity value, this question turns out to be meaningless and unanswerable.



grounding -- grounding, grounding, grounding

 

Failure to understand the mutual role of Balance and Equity entails a misunderstanding of the merits of the lokas question.

 
Олег avtomat:

Equity becomes informative only in relation to Balance. Balance is the current baseline in relation to which Equity can be said.

Isn't it clear?

You have the current Equity=1200. Is it a lot or not? Without knowing the current Equity value, this question turns out to be meaningless and unanswerable.



Grounding -- grounding, grounding, grounding

And if you think about it a little more.

Margin is needed, no?

Maybe then the balance will fall out of use...
 
Renat Akhtyamov:

And if you think about it some more.

You need margin, don't you?


Well, margins can range from full overlap -- through partial overlap -- to no overlap.

That's why it's not so clear-cut.

 
Олег avtomat:

Well, margins can range from full overlap -- through partial overlap -- to no overlap.

That's why margins aren't so clear-cut.

Read two posts, not one.
 
Renat Akhtyamov:
Read two posts, not one.

er... explain