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Registered User
Joined: 1/31/2005
Posts: 24
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Two Blocks Questions:
1. I notice that "trailing stops" often does not close trades on the strategy screens when I think they would. If we are using an 8% trailing stop, doesn't the new stop measure the 8% from the highest point achieved after the trade is instituted? Or is the stop measured from closing prices?
2. I just purchase the mutual fund blocks program, and it appears that the backtesting is often inaccurate because of bad data. Quite often, if you run scans for the leading funds, there are quite a number of funds showing huge gaps in data near the top. This makes some of the backtesting of funds show "infinite" returns, or skews the back tests to show 100's or thousands of percent returns, changing
the average returns for those back tests dramatically. Can Blocks be taught to ignore these data anomalies, or can the data be corrected so that this will not be a factor in the back tests.
This is a problem that is causing me to feel that NONE of the mutual fund backtesting comes up with accurate return numbers, and makes me wonder if the program can be trusted at all. Please give me your thoughts.
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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A trailing stop is measured from the highest high of the trade.
If your buy condition is still true when the sell condition is true the trade will not close unless you favor exits over entries in the settings of the strategy.
- Craig
Here to Help!
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Registered User
Joined: 1/31/2005
Posts: 24
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Hi Craig - I don't know whether you noticed the 2d question I had on Mutual Fund data and the effect it has on scans? Would like to have your thoughts on it.
Thanks.
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Can you give me a couple tickers that I can take to the data department for their review?
- Craig
Here to Help!
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Registered User
Joined: 1/31/2005
Posts: 24
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Hi Craig - Here are a few mutual fund tickers which seem to be flawed.
OBIOX, DSIAX, OEPIX, SPEAX, DSEAX, DXZLX, MKHIX, DXDSX, PISFX, AEQBX, PLTBX.
Thanks for the note on the trailing stops - I was not favoring exits over entries.
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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I will see what I can find out about those funds for you.
- Craig
Here to Help!
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Registered User
Joined: 1/31/2005
Posts: 24
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Hi Craig -
Have not heard from you yet on data errors throwing off backtests in mutual fund blocks yet. I did notice the error also in a few etf's with bad data. Two examples are TLO and JNR.
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