I’m a new trader who has just finished the babypips school program (very useful and many thanks to those who compiled it) and have just started backtesting the Cowabunga strat as its helping me to understand how all the components come together in a system. I am using AlgoWizard for my backtesting.
I’m not 100% certain these are the correct settings for the backtest. Additionally setting the Entry and Exit parameters has a significant impact on the strategies effectivesness but i’m not sure what settings i should use for this strategy so any advice would be appreciated.
E.g., what should i set?
Basically. The netry and exit signal settings can have a critical impact on the strats success when backtesting so i need to get t hese just right for the strat:
I’ve heard of this strategy but never looked into it. I’m surprised something so well known has a vagueness over entries and exits. That would make me a little concerned.
definitely, more data, one year is not enough, fixed lot as money management. Generally this strategy, is complicating, 4 conditions for entry is really to much, if you think that strategy really works, you have to check different settings, make a note, draw conclusions. Regards Greg
I know more data is needed. Time extension noted. The signals I have used are what are used in the cowabunga strat. What I was more concerned about was good exit strat: how many bars? Stop loss in pips? Or ATR settings? And you say use fixed lots. What is the reason for this? A lot of what I have read, as far as small accounts are concerned is use a fixed percentage of the account as essential risk management. Is there a good reason not do this?
so substantive answer for you, is give you exit rules information, what working good or not on the “plate”. I gave you an answer, “do your own research”, clearly, you are in the very beginning in topic call “research and testing strategies”, how much time you have to spend how to do it properly.
This is the easiest way to compare numbers ( P/L in pips and cash ) in backtest.
I have a fair amount of time. Im not looking to be absolutely exhaustive about it as i’m aware there is a degree of fluidity to trading that cannot be factored into backtesting. I’ve played with adjusting exit conditions at 25-50-120 pips on long/short positions. 25 for the time being seems more sensible until i have more experience about extending/adjusting positions in real time. Im not confident enough with ATR rules at the moment so thats another reasoni was asking for a pre-set i can tinker with. Another netr/exit condition was number of bars but i find this to be too inflexible and arbitrary unless i guess you have some very specific target/position in mind. I was and sitll find tradinfview more userfriendly than MT4 but found that i can automate my strategies on MT4 so have been playing with that today. Still a long way to go. But its a start.
