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RE: [system-traders] Three Moving Averages



Excellent - that's got me started.

Just two other questions. I've attached the output of the backtest
results and I'm not sure of a couple of things in it.

1. What's the difference between the Net Gain and the Gross Gain. My
results have a Net Gain of $8760.96 and a Gross Gain of $12135.95. I can
see that the Net Gain is the sum of the gains minus the sum of the
losses but I don't know what the Gross Gain represents.

2. Buy and Hold strategy figures don't look quite accurate but again I'm
not sure what they represent. It says there was a MaxDrawDown for B&H of
about 238% but I don't see anything that bad in the 5 years worth of
data I have.

Many thanks

Craig 



-----Original Message-----
From: Oliver Bossert [mailto:olf
AT
olfsworld.de] 
Sent: Wednesday, 15 June 2005 5:04 PM
To: system-traders
AT
geniustrader.org
Subject: Re: [system-traders] Three Moving Averages

Hi, 

> Basically I'm trying to setup a Three Moving Averages system. I'm 
> going to start with a 5, 15 and 30 day simple moving average. I'll 
> open a long position when the 15 day SMA crosses above the 30 day SMA 
> and the close price of the security is above the 5 day SMA. I'll close

> the long position when the 5 day SMA crosses below the 15 day SMA. 
> That's basically it. Can someone give me the correct syntax for what I

> type in the [XXXX] above to represent this system. Once I see it I'll 
> be able to work out the opening of a short position with the same 
> rules. I'll use Basic MoneyManagement to start with so I can see how
the system works.

./backtest.pl 500340 --system="Generic {S:Generic:CrossOverUp {I:SMA 15}
{I:SMA 30}}" --close-strategy="Generic {S:Generic:CrossOverDown {I:SMA
5} {I:SMA 15}}"

CU, Olf
--
Visit my world: http://www.olfsworld.de

## Analysis of SY:Generic {S:Generic:CrossOverUp {I:EMA 15 {I:Prices CLOSE}} {I:EMA 30 {I:Prices CLOSE}}}|CS:Generic {S:Generic:CrossOverDown {I:EMA 5 {I:Prices CLOSE}} {I:EMA 15 {I:Prices CLOSE}}} {S:Generic:False }|MM:Basic
History of the portfolio :
--------------------------
Long position (0) on NATIONAL AUSTRALIA BANK LIMITED (3)
  2000-03-28  Buy      758 at 13.1800
  2000-07-07  Sell     758 at 18.2500
Long position (1) on NATIONAL AUSTRALIA BANK LIMITED (3)
  2000-08-16  Buy      764 at 17.9400
  2000-09-07  Sell     764 at 17.6200
Long position (2) on NATIONAL AUSTRALIA BANK LIMITED (3)
  2000-10-04  Buy      710 at 18.7700
  2000-12-14  Sell     710 at 21.5600
Long position (3) on NATIONAL AUSTRALIA BANK LIMITED (3)
  2001-01-29  Buy      674 at 22.5700
  2001-02-15  Sell     674 at 22.0600
Long position (4) on NATIONAL AUSTRALIA BANK LIMITED (3)
  2001-04-10  Buy      655 at 22.3600
  2001-04-17  Sell     655 at 21.8350
Long position (5) on NATIONAL AUSTRALIA BANK LIMITED (3)
  2001-04-24  Buy      631 at 22.6390
  2001-07-04  Sell     631 at 26.8890
Long position (6) on NATIONAL AUSTRALIA BANK LIMITED (3)
  2001-07-17  Buy      627 at 26.6300
  2001-07-27  Sell     627 at 25.8300
Long position (7) on NATIONAL AUSTRALIA BANK LIMITED (3)
  2001-08-03  Buy      586 at 27.2230
  2001-08-21  Sell     586 at 26.8800
Long position (8) on NATIONAL AUSTRALIA BANK LIMITED (3)
  2001-10-23  Buy      681 at 23.3410
  2001-12-07  Sell     681 at 25.6030
Long position (9) on NATIONAL AUSTRALIA BANK LIMITED (3)
  2002-04-26  Buy      581 at 29.6100
  2002-06-21  Sell     581 at 30.3300
Long position (10) on NATIONAL AUSTRALIA BANK LIMITED (3)
  2002-08-14  Buy      582 at 29.4800
  2002-09-26  Sell     582 at 29.7400
Long position (11) on NATIONAL AUSTRALIA BANK LIMITED (3)
  2002-11-27  Buy      594 at 28.8800
  2002-12-11  Sell     594 at 28.0800
Long position (12) on NATIONAL AUSTRALIA BANK LIMITED (3)
  2003-01-28  Buy      588 at 27.9600
  2003-01-29  Sell     588 at 28.0600
Long position (13) on NATIONAL AUSTRALIA BANK LIMITED (3)
  2003-03-25  Buy      618 at 26.5300
  2003-05-05  Sell     618 at 27.9400
Long position (14) on NATIONAL AUSTRALIA BANK LIMITED (3)
  2003-08-18  Buy      583 at 29.6300
  2003-08-21  Sell     583 at 29.0800
Long position (15) on NATIONAL AUSTRALIA BANK LIMITED (3)
  2003-12-10  Buy      608 at 27.4300
  2003-12-22  Sell     608 at 27.0600
Long position (16) on NATIONAL AUSTRALIA BANK LIMITED (3)
  2004-01-29  Buy      587 at 27.7200
  2004-03-26  Sell     587 at 28.6700
Long position (17) on NATIONAL AUSTRALIA BANK LIMITED (3)
  2004-06-04  Buy      603 at 27.8100
  2004-07-15  Sell     603 at 26.8500
Long position (18) on NATIONAL AUSTRALIA BANK LIMITED (3)
  2004-10-06  Buy      629 at 25.5400
  2005-02-21  Sell     629 at 28.6700
Long position (19) on NATIONAL AUSTRALIA BANK LIMITED (3)
  2005-03-17  Buy      622 at 28.6600
  2005-03-21  Sell     622 at 28.3600
Long position (20) on NATIONAL AUSTRALIA BANK LIMITED (3)
  2005-05-02  Buy      616 at 28.5000
  2005-06-06  Sell     616 at 30.9100

## Global analysis (full portfolio always invested)
Analysis of the portfolio (2000-01-03 / 2005-06-06) :
-----------------------------------------------------
Performance :  87.6% ( 11.9%)     Buy & Hold : 104.3% ( 13.6%) () => by year
MaxDrawDown :        7.6%  B&H MaxDrawDown :   238.0%
Best performance :  87.6%  Worst performance :   0.0%
Net gain :        8760.96  Gross gain :      12135.95

Trades statistics :
Number of trades :     21  Trades/Year :         3.87
Number of gains :       9  Number of losses :      12  Win. ratio :   42.9%
Max consec. win :       2  Max consec. loss :       3  Expectancy :    0.03
Average gain :     11.13%  Average loss :      -2.65%  Avg. perf  :   3.04%
Biggest gain :     37.41%  Biggest loss :      -4.44%  Profit fac :    4.20
Sum of gains :   13906.18  Sum of losses :   -5145.22  Risk of ruin :  4.4%