Selection criteria in the Marketplace - page 5

 
Georgiy Merts:

Sad. Well, my TC League report - I'll post it tomorrow morning...

OK
 
Georgiy Merts:

Sad. Well, my TC League report - I'll post it tomorrow morning...

I wanted to clarify. In the tester, when growing, should the balance be higher than the funds or vice versa?
 
Vladimir Baskakov:
I wanted to clarify. In the tester, when growing, should the balance be higher than the funds or vice versa?
It is better to be higher. When funds are below the balance, it is a drawdown.
 
Vladimir Baskakov:
I wanted to clarify. In the tester, should the balance be higher than the funds when rising or vice versa?

I never look at the balance. Only the Equity. I don't care what the balance is, in my opinion, this value means nothing. In theory, Artem is right - it's better when the equity is higher than the balance.

In TC League - the balance graph is shown only because it is much harder to depict the Equity curve based on historical data. But, given that all trades are closed, and none of the TCs in the League are not "sitting out" (they all have SL, which never increases), we can assume that the balance of TCs from the League is approximately equal to Equity.

 
Georgiy Merts:

I never look at the balance. Only on Equity. I don't care what the balance is, in my opinion, the value means nothing. In theory, Artem is right - it's better when the equity is higher than the balance.

In TC League - the balance graph is shown only because it is much more difficult to depict the Equity curve from historical data. But, given that all trades are closed, and none of the TCs in the League are not "oversubscribed" (they all have SL, which never increases), we can assume that the balance is approximately equal to Equity.

There's also the initial value that matters. If both lines are higher, all is well. If only one, somewhere vulnerable
 
Vladimir Baskakov:
It's also the initial value that counts. If both lines are higher, all is well. If only one, there's a vulnerability somewhere.

I don't understand, how can it be "both lines above the balance" ? Which lines are we talking about?

 
Georgiy Merts:

I don't understand, how can there be "both lines above the balance" ? Which lines are we talking about?

Above the initial value. You set it during the test, 10 or 100 thousand
 
Vladimir Baskakov:
Above the initial value. You set it in the test, 10,000 or 100,000.

Ahh...

Well, in theory, yes. But in practice, again, don't look at the balance. If Equity is steadily growing, the balance may be not only below the initial value, but even negative. And it will be a good trade.

 
Georgiy Merts:

Ahh...

Well, in theory, yes. But in practice, again, don't look at the balance. If your Equity is in steady, stable growth, the balance can be not only below the initial value, but even negative. And it will be a good trade.

I wouldn't say that if all positions are closed at once, these lines will converge. And if the balance is below the initial value but the funds are higher, it is a bubble or a pyramid
 
Vladimir Baskakov:
I wouldn't say, if all positions are closed at the same time these lines will converge. And if the balance is below the initial value and the funds are higher, it is a bubble or a pyramid

Interesting, interesting. How is it that they don't add up?

Again, the balance may be negative, but if the funds are positive, then no pyramid bubbles. This can easily happen when trading with hedging. If we open a counter position, one went up, the other went down, say, the initial amount is 10, on one +20 and on the other -25 (taking into account the spread), therefore the balance is +10 (equal to the initial amount), Equity +5. If we close now, the Equity and balance will be +5.

Suppose we have guessed the trend, close a losing position and we have a balance of -15, still +20 in the open position and Equity is still +5. And after some time (we have guessed the trend) we have +50 on the open position and Equity is still +35. On the balance sheet it is still -15. If we can close, both curves will converge to +35.

Where is the "bubble or pyramid" here?