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cTrader Grid-Hedge Backtesting

If you need help with backtesting a cTrader trading robot then follow the link below which will go into detail on how to do it.

 

Important Information - Compounded Drawdown Risk

It may be worth noting that if you achieve a 5% drawdown (capital at risk) with a back-test run for a single symbol and you wish to run 10 cBot instances or 10 symbols at the same time and they all show around a 5% drawdown than you could potentially have a compounded drawdown of 50%. If you plan to run multiple currency symbols or cBot instances at the same time be aware that the total draw-down can be much higher.

If you wish to have a maximum drawdown at any time of only 10% and you want to run 10 cBot instances or symbols than it is wise to adjust the settings so that each symbol shows only a 1% drawdown for your backtest.

 

Common Questions

  1. When the backtest ends, why is the equity not equal to the balance and why does it show drawdown?

This happens when there are still trades open and at a loss, at the end of a backtest the cTrader platform does not automatically close all trades, you will find that some positions will still be open, sometimes in profit and sometimes in a loss.

 

** If you go back to the introduction page you can watch a video tutorial for the Grid-Hedge trading robot which includes how to backtest.