Selection criteria in the Marketplace - page 8
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The computer is far away.
Sometimes equity raises to the limit, while the balance does not. And at one moment, equity has flown away to the balance. This suggests that the TS is unstable and it will fail in the long run.
This is if the price "suddenly" reversed, and you did not have time to close the position and blew all the paper profit)))) you just need to work on exiting the position.
Here's an example in your profile, how the growing balance of closing positions falls and is compared to equity... It cannot be more demonstrative.)
This is if the price "suddenly" reversed, and you did not have time to close the position and blew all the paper profit)))) you just need to work on exiting the position.
Here's an example in your profile, how the growing balance of closing positions falls and is compared to equity... You can't get any better than that.)
and i was trying to click on play........
and I was trying to click on play........
Sometimes, equity raises to the limit while the balance does not. At one moment, the slump and the equity went to the balance. This suggests that the TS is not stable and it will fail in the long term.
When Equity rises but the balance sheet does not, it means that total profits are rising but profits on closed trades are not. What does this mean? It means that we have open trades, which are in the plus, and which we have not yet closed.
If "at one moment Equity has slumped and gone to balance" - it means that profits on our open trades have disappeared - this happens when the trend has changed and gone in the other direction, and we do not close the trades. Moreover, the Equity can also fall below the balance - we will incur losses.
But in full closing of trades - the balance will always "jump" to the Equity, no matter where it is. The Equity changes smoothly with every tick (even the news have smoothness anyway, just Equity can change by tens or even hundreds points with every tick). Regardless of how we trade - by robot, manually, or combined - the balance is secondary, and it is - "bang, and goes to Equity", but not vice versa. And, the moment of this "bang" - you can fully control. As soon as all deals are closed, the balance is compared with Equity. It is not vice versa.
When Equity rises but the balance sheet does not, it means that total profits are rising but profits on closed trades are not. What does this mean? It means that we have open trades, which are in the plus, and which we have not yet closed.
If "at one moment Equity has slumped and gone to balance" - it means that profits on our open trades have disappeared - this happens when the trend has changed and gone in the other direction, and we do not close the trades. Moreover, the Equity in this case can go below the balance - we will be in the loss.
But in full closing of trades - the balance will always "jump" to the Equity, no matter where it is. The Equity changes smoothly, with every tick (even the news have smoothness, but with every tick the Equity can change by tens or even hundreds points). Regardless of how we trade - by robot, manually, or combined - the balance is secondary, and it is - "bang, and goes to Equity", but not vice versa. And, the moment of this "bang" - you can fully control. As soon as you close all deals, the balance is compared with Equity. It is not vice versa.
and I tried to press play........
Yeah, tried to press the arrow a few times too...
My basic thought is not based on trend, rather on volatility, much more effective
What difference does it make?
It was a question of whether the balance curve was necessary.
I said it is the Equity curve that is primary. The balance curve "jumps" to the Equity curve after every trade is closed. So - no matter what the balance curve is, the Equity curve is primary.
Also I have pointed out the exceptions - say, depicting an Equity curve from history data is very difficult. Therefore, if the TS is known not to be engaged in overshooting, with some approximation we can assume that the balance curve is not much different from the Equity curve. But even here the main curve is Equity. And we use the balance only because it is much easier to work with.
What difference does it make?
It was a question of whether the balance curve was necessary.
I said it is the Equity curve that is primary. The balance curve "jumps" to the Equity curve after every trade is closed. So - no matter what the balance curve is, the Equity curve is primary.
Also, I pointed out the exceptions - say, it is very difficult to plot the Equity curve from history data. So if you know that CU is not in the business of overshooting, you can assume with some approximation that the balance curve is not much different from the Equity curve. But even here the main curve is Equity. And we use the balance only because it is much easier to work with.
I'll still stick to my opinion. Both lines should be above the initial value. This is a sign of a stable TS.
Well, if one understands sustainability as "profitability", then yes. Again, though, you don't have to pay attention to the balance line. But if you like paying attention, pay attention.
But, in my opinion, "sustainability" is not profitability at all.
A perfectly stable TS is the TS which does not open a single trade. Its behavior is absolutely stable, and it doesn't depend on market behavior changes. Now, if we could add profitability to such stability, it would be the Grail.