Author Topic: How to avoid simultaneous long/short position in a trade system?  (Read 503 times)

Marcelo

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Hi I'm trying to evaluate a tradesystem but I don't want to open multiple long/short position. How can I do that?
Thank you

Sacha

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Re: How to avoid simultaneous long/short position in a trade system?
« Reply #1 on: October 16, 2019, 01:45:19 PM »
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I don't want to open multiple long/short position. How can I do that?
Not sure I understood your question. During testing of a Trading System for a security only one position is created at any point of time. Once that position is closed then only new position is opened whenever there is new signal. So, it is already at most one position at any point of time. Did you mean something else? Please let me know.

One point here to note is that as of now backtesting only opens long positions. You can have a Trading System that can generate signals for long and short both and you can screen stocks for all sorts of signals but backtesting only tests long positions. That in future can change of course.
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Marcelo

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Re: How to avoid simultaneous long/short position in a trade system?
« Reply #2 on: October 17, 2019, 11:11:39 AM »
Hello Sasha, thanks for the quick reply. You're right, only one position is opened for backtest runs. I got confused when I added buy/sell signals on the eod chart from a trading system, in this case all signals are displayed.I thought the backtest data was displayed on the chart when I added buy/sell signals.

Thanks
Marcelo


Sacha

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Re: How to avoid simultaneous long/short position in a trade system?
« Reply #3 on: October 17, 2019, 06:32:37 PM »
Cool.
Also while plotting buy/sell signals you can chose not to display all signals. See attached image.
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