Strange-looking equity curve in prorealtime

G'day all,

I'm new to Forexfactory and have a question about the strategybuilder in ProRealTime. I made a simple strategy as a test, and found something strange.

The strategy buys if RSI < 35 and sells if RSI > 65, and it had a trailing stop of 10%. When I tested it on stocks, I got the results that I expected, but I tried it on the EUR/USD Spot and the equity curve confused me.

If you look at the attachments, you can see for yourself. I think it has to do with the capital management settings, but I'm not sure what to change. BTW, the broker I plan to use has a spread of 1 pip on the EUR/USD (with a max of of 3 during periods of high volatility)

Can anyone help me? If I need to post anything else, just let me know. Or if I should post this anywhere else to get a faster reply, please let me know.

Thank you in advance!!
(this post is nearly an exact copy of one I posted at trade2win, I'm not trying to spam the forex forums, I'm just in need of an answer and this programming forum seems more active than theirs!!)

Best regards,
Jason

Not sure why the broker fees are so high, can you post the code and i will try it myself. Here is a pic of a new system im trying out. The indicator called gappy shows the equity line, the green bars are the win/loss amounts per trade. Red bar signals that a trade has been triggered.

Down the bottom is the ATR and BBW just to make sure there is enough volatility to trigger it.

That shows trades for 2008. This system works and needs volatility and lately it works a charm!

GCT

Hi GCTrader1,

Thank you for replying!!

This is the code:
----------------------------
REM Buy
indicator1 = RSI[14](close)
c1 = (indicator1 < 35.0)
IF c1 THEN
BUY 20 %CAPITAL AT MARKET THISBARONCLOSE
ENDIF

REM Sell
indicator2 = RSI[14](close)
c2 = (indicator2 > 65.0)
IF c2 THEN
SELL AT MARKET tomorrowclose
ENDIF
----------------------------
It also has a trailing stop of 2%.

Keep in mind, it's just a test, I wasn't concerned with profitibility yet.

When I test it on stocks, the equity curve and broker fees look normal. I'm convinced the problem's in the capital management settings, but I'm new to forex and prorealtime. With stocks it's easy, just a fixed amount of transaction charges, but with forex you have standard and mini contracts and you pay the spread instead of a commission (I'm going to be trading mini contracts in the beginning and my broker has a spread of 1 pip most of the time, if that helps).

I included an image of the capital management settings for lots in case it helps.

I have a question about your system (if you don't mind ofcourse). Why don't you use the standard equity curve? It's already there, and there's a lot of info in the backtest report.

Thanks again for replying!

Hi,

just a quick question. Have you managed to find a solution to the problem in the capital management for forex backtesting as I have exactly the same problem.

Thanks in advance
K