Why I Always Backtest With Fixed Lots

Рет қаралды 509

Күн бұрын

Position sizing has a huge impact on backtest performance. Here I illustrate why.
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⏰ Chapters:
0:00 Intro
0:31 Purpose of backtesting and position sizing
1:00 How position sizing can deceive you
1:34 Backtest examples
2:28 Dollar vs. percentage metrics
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Пікірлер: 9

@TradingTact 4 ай бұрын

My recommended broker: globalprime.com/?refcode=82309 Highest rated broker on FPA! shorturl.at/efpE6

@Cyuansheng 4 ай бұрын

Hey fellow SG dweller using SQX as well here! IMO fixed lot size only works well in backtest if you are using fixed SL values as you can control 100% of your risk value. For any volume/volatility-based SL, a fixed lot sizing will result in a very wide range of dollar at risk. This will make comparing of trades more difficult. Personally, I would prefer to use fixed value like 1000 with micro-lot enabled, and in a backtest portfolio value of 100k. This way, it works well for both method of stop losses. Maybe we can connect further if you are interested, it is really rare to see another SG person working with SQX haha 😅

@TradingTact 4 ай бұрын

thanks for your comments. Yes drop me an email anytime

@tienq292 4 ай бұрын

Thanks for the knowledge, what do you think about Fixed Amount?

@TradingTact 4 ай бұрын

Do you mean like fixed $ amount? I think it should be the same as long as you trade the same $ throughout the backtest.

@-xx-7674 4 ай бұрын

But don't you think compounding is accurate to analyse if an asset can actually beat buy and hold. For any strategy to perform better than investment it should beat B&H, what do you think ?

@TradingTact 4 ай бұрын

yes i backtest with fixed lots first, and if it passes, then i add fixed fractional to it. Just a simple change under the money management tab.

@AB-zv6dz 4 ай бұрын

How come your profit factor on myfxbook is less than 1? Err... you're losing money?

@TradingTact 4 ай бұрын

not sure, still 70% since Feb 21. Maybe the profit factor takes absolute win and loss amounts, not relative. The account was most heavily funded in H2 last year, when it underperformed, so thats probably why.