If you have a linearly losing strategy on strategy tester can inverting buy and sell simply make it winning?

 

If you have a linearly losing strategy on strategy tester  equity is moving downward to zero can inverting buy and sell make it simply work? 


if your answer is no then why?

 
Always buying is a loosing strategy. Always selling is also. Either way you have to pay the spread.
 
William Roeder #:
Always buying is a loosing strategy. Always selling is also. Either way you have to pay the spread.
no I mean if the strategy tester shows a downward equity curve linearly (not ranging) would switching buy and sell make it work
thank you for answering
 
Youssef Mohamed Abdelfattah Abdelhamid:

If you have a linearly losing strategy on strategy tester  equity is moving downward to zero can inverting buy and sell make it simply work? 


if your answer is no then why?

it depends on your Expected Payoff. If it is too close to zero (like I believe it is in your specific case, given the enormous amount of trades), you won't gain enough to cover the costs of commissions, spread, and eventually swap. You can check how much you lose to them by right clicking on the backtest page and selecting the Deals page. At the end you'll see your total profit and the total costs. For example, if you have between -10$ and 0$ Expected payoff on 1 lot, inverting buy and sell would be useless. If you lose a lot per trade instead (like 50$), you may have a chance.
 
Daniele Fughelli #:
it depends on your Expected Payoff. If it is too close to zero (like I believe it is in your specific case, given the enormous amount of trades), you won't gain enough to cover the costs of commissions, spread, and eventually swap. You can check how much you lose to them by right clicking on the backtest page and selecting the Deals page. At the end you'll see your total profit and the total costs. For example, if you have between -10$ and 0$ Expected payoff on 1 lot, inverting buy and sell would be useless. If you lose a lot per trade instead (like 50$), you may have a chance.

thanks very much 

 
It will also depend on what the losing strategy is, and what the stops are. Example, if your strategy has very close stop loss and so it keeps losing, then inverting it won't help. It will still keep losing. Also market timings are important. Especially when EA is scalping and it does not stop trading when spreads are quite high. So there are a lot of factors. It is dangerous to just reverse a strategy without really understanding why it is failing in the first place.
 
Adrian #:
It will also depend on what the losing strategy is, and what the stops are. Example, if your strategy has very close stop loss and so it keeps losing, then inverting it won't help. It will still keep losing. Also market timings are important. Especially when EA is scalping and it does not stop trading when spreads are quite high. So there are a lot of factors. It is dangerous to just reverse a strategy without really understanding why it is failing in the first place.
Yes,
Thank you very much