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Re: Failed Prop Trader Rebuilding System

kbs, Mon Oct 09, 2023 7:47 am

I wanted to change currency pairs and perform a back-test of CHFJPY which covered about 3 years of daily chart data.
When I was auditioning with my prop firm, I had done some research on Market Milk (https://marketmilk.babypips.com/) to see which pairs were the most volatile.
CHFJPY was usually amongst the most volatile pairs, along with GBPJPY or NZDJPY, if memory serves.

But I digress. In this back-test I got KILLED. I ended with -2.46% ROI.
I suspect that I ended with this drawdown because the system was unequipped to handle the extreme market conditions that CHFJPY presented.
I also noticed that all of the indicators appeared to repaint directly after they gave a signal. I did not notice the indicators repaint when a signal was already established in a period further back.
Again, this error seems to occur directly after a signal first shows up.
It is unclear why this happens. I suspect this could be a limitation of MQL4, the back-testing software, or the indicators themselves.
Furthermore, I do not blame the indicators for the negative ROI.
In the attached screenshots, you can see 3 different instances of these errors. In each case, it happened with a different indicator (first TDFI, then PTH, then SuperTrend).

For my next back-test, I will continue with the same data, but adjust the indicator parameters and reduce the risk-per-trade. Then, I will conduct another back-test with different indicators.
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