Are this type of graphs a sign for a bad thing?

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I recently implemented a new function in an EA, to close orders when they are in profit, I got this graph: 

At first sight, the results look amazing. However, when testing the same configuration over different time periods, the results turn out to be completely the opposite.

The lines that did this were this ones:

if(profit > 0 && type == POSITION_TYPE_BUY)
	{
         Trade.PositionClose(ticket);
        }
 
If that is your code, then once the trade profits even 0.01, it closes the trade. You will be losing after slippage, swap, and commission.
 
Christian Paul Anasco #:
If that is your code, then once the trade profits even 0.01, it closes the trade. You will be losing after slippage, swap, and commission.
Let’s assume the trades are profitable and there is enough margin to sustain positive outcomes. What would be your thoughts on this graph?
 
Osmar Sandoval Espinosa #:
Let’s assume the trades are profitable and there is enough margin to sustain positive outcomes. What would be your thoughts on this graph?

I think that you're missing the point:

Christian Paul Anasco #:
If that is your code, then once the trade profits even 0.01, it closes the trade. You will be losing after slippage, swap, and commission.

The point is that your code is basically using the smallest dynamic take-profit possible which is inherently less than that which the variable elements of live trading will allow─in terms of taking actual profit.

As long as you're going with a theory of infinite capital, you might as well go with full blown Martingarbage that does something during drawdown (this is in jest). But seriously, you seem to have no stops. Unlimited drawdown never ends well. This is an additional issue with your graph.

Perhaps there's more to your greater code and we're missing something?

 
Ryan L Johnson #:

As long as you're going with a theory of infinite capital, you might as well go with full blown Martingarbage that does something during drawdown (this is in jest). But seriously, you seem to have no stops. Unlimited drawdown never ends well. This is an additional issue with your graph.

This was my point: not having a stop loss, and only closing trades when they are in profit, no matter what.

I think this is very exciting for a newcomer to algo trading to see, but over time, the equity curve tends to go to zero.

 

There are several combinations of exiting only with a profit.   Such as, exit only in profit for a certain number of pips at the close of a bar in any timeframe.   So that's 3 parameters to be tested.

Larry Williams popularized the first profitable close (often called the Bailout Exit) as an exit strategy where a position is closed as soon as the market opens at a price that puts the trade in profit.
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