Backtest - Multiple STOP Criteria
Allow for combination STOP criteria - example: 30% Gain and/or 15% TRAILING STOP. This is possible in Prographics 6 Simulator but not VV7.
Yes I agree this is very critical.
Another combination would: Gain = any % Loss = REC "Sell"
Roger McMurtrie commented
Remember Dr Delito's warning: "Ignore Sell signals at your peril"!
Surly such a warning from the master should be incorporated into the system.
I ran a number of Midas Touch backtests over a one year period and found that some stocks bought at the beginning of the period were still in the portfolio at the end of the period despite having Sell signals, usually within early (say 4) months of purchase.
If I was actually trading those stocks, I would have sold them on the Sell signals and, hopefully, replaced them with current Midas Touch stocks.
Pieter Albertyn commented
I would love to have multiple stops. ie Fixed loss with a VST stop. I agree with Keith Lawrences comments
Kevin Hallman commented
I strongly agree. I am finding that the backtest tool is almost useless for me because it's stop criteria cannot be set to match closely what I would actually do. When I analyze the results of a backtest to find out why it performed the way it did I often find stocks held beyond where I would have exited since my other criteria are ignored. I do not just have exclusively one exit criteria. There should be a way to add multiple stop criteria
eric suss commented
Ditto. I would pay extra for this capability. The backtester isn't versatile enough for a complex trading environment. I believe you should add multiple entry/exit criteria. i.e. bracket (sell limit, sell trail).
Joachim Kiener commented
Highly desirable !!
Keith Lawrence commented
Improved STOP criteria in VV7 would be very desirable. Adding an "or" capability would go a long way. example: sell if REC='S' or if gain =50% or RT<1
Gerald Wollert commented
I think this would be a highly valuable addition to the backtest module on the VV 7.0 Platform. I have found that combining a fixed ROI percentage profit target with a trailing stop provides superior results to a simple G/L stop.