Buy/Sell when SAR cross signal confirmed by PlusDI over/under MinusDI or ADX cross signal confirmed by SAR.
EU H4. On one year.
Total net profit : 1456.43%
RDD : 29.58%
I'm still new at this, but the ticks at the bottom of the strategy tester represent days right? $1,000 deposit become well over 100k in just a few months. Thats really good.
Well keep in mind that is a one year graph.
Also notice it appears that the slope goes sideways in the beginning....but if you look at how the scale of the graph is formatted it is decieving and the profit in fact does not go sideways as it seems.
Agreed this is a good looking graph....but it is not a forward-test and I would never trust a backtest, other than to "trouble-shoot" a code....
P.S. Now some avid backtesters have admonished me to re-think my statement....they claim that if a backtest reveals 1400+ percent that it would be a qualifier to forward-test when choosing from the myriad of systems at this marvelous forum of funyoo's. I stand behind my statement....bad data in = bad data out....just because comparisons are made with MT4's faulty platform does not mean that they are normalized, even if they have 90% + modeling quality. A visual backtest is needed or Forward testing to verify.
Last edited by ElectricSavant; 01-31-2009 at 18:12.
This system looks vey promising. Has anyone started forward testing it?
I'm studying this too & trying to get the feel of this excellent indicator by visual backtesting.
Your code seems to trade on Wilder's simplest allgorithm:
D+ > D- = buy, D- > D+ = sell, (filtered by SAR.)
double ADXP1=iADX(NULL,0,ADXPeriod,PRICE_CLOSE,MODE_PLUSD I,i+1);
double ADXP2=iADX(NULL,0,ADXPeriod,PRICE_CLOSE,MODE_PLUSD I,i);
double ADXM1=iADX(NULL,0,ADXPeriod,PRICE_CLOSE,MODE_MINUS DI,i+1);
double ADXM2=iADX(NULL,0,ADXPeriod,PRICE_CLOSE,MODE_MINUS DI,i);
(Welles Wilder also added "a rule of points of extremum" to decrease false signals. The "extremum" is the HIGH of the bar if D+ crosses over D-. Or, the LOW of the bar if D- crosses over D+. Trades would only be made if price exceeded the "extremum.")
In my experience, D+ and D- sometimes "kiss and run away".
alexjbrandt shared his real-life experience with ADX in anoyher post: "As its been my experience that the lines met, so I would place a order, but then the lines would retreat back and I would have a losing trade) SO IT IS VITAL THAT THE LINES EXCEED THE CROSS! (I've learned my lesson on this)."
In live trading, he suggested that a trade not be initiated unless D+ exceeds D- by 10 points (or vice versa). This seems like a great idea to make your EA better.
Would you be so kind as to insert this into your code?
(I really appreciate all the bells and whistles you've included!)
Thanks for your hard work, kindness and generosity...sure "indicator" of a mature human.
I'm trying backtesting with EURUSD 1H on Alpari data.... but it doesn't work... :-( I think it's because Alpari has 5 digits. What do I have to change?