Breakeven vs MFE

• 01/11/2022 at 1:56 AM #185051
  Khaled

  Hello,

  Testing this very simple system to understand how the breakeven works compared to MFE. Dow TF 5 min.

  Simple for test

  DEFPARAM CUMULATEORDERS = FALSE TIMEFRAME(1 hour) MAFastH1 = HullAverage[5](close) MASlowH1 = HullAverage[13](close) TIMEFRAME(DEFAULT) MAFastM5 = HullAverage[8](close) MASlowM5 = HullAverage[21](close) StoK = Stochastic[8,3](close) StoD = Stochasticd[8,3,5](close) //////////// long=0 short=0 if stok>50 and stok<stok[1] and stok<stod and MAFastM5<MASlowM5 and MAFastH1<MASlowH1 then short=-1 endif if stok<50 and stok>stok[1] and stok>stod and MAFastM5>MASlowM5 and MAFastH1>MASlowH1 then long=+1 endif // Conditions pour ouvrir une position acheteuse IF NOT LongOnMarket AND long=+1 THEN BUY 1 CONTRACTS AT MARKET ENDIF // Conditions pour fermer une position acheteuse If LongOnMarket AND (short=-1 or (stok[1]<stok and stok[1]<stok[2])) THEN SELL AT MARKET SELLSHORT 1 CONTRACTS AT MARKET ENDIF // Conditions pour ouvrir une position en vente à découvert IF NOT ShortOnMarket AND short=-1 THEN SELLSHORT 1 CONTRACTS AT MARKET ENDIF // Conditions pour fermer une position en vente à découvert IF ShortOnMarket AND (long=+1 or (stok[1]>stok and stok[1]>stok[2])) THEN EXITSHORT AT MARKET BUY 1 CONTRACTS AT MARKET ENDIF // Stops et objectifs : entrez vos stops et vos objectifs ici SET STOP %LOSS 1 ///2 BREAKEAVEN/////////// once breakeaven = 1//1 on - 0 off startBreakeven = 35 //how much pips/points in gain to activate the breakeven function? PointsToKeep = 5 //how much pips/points to keep in profit above of below our entry price when the breakeven is activated (beware of spread) ///2/////////////////////////////////////////////// //reset the breakevenLevel when no trade are on market if breakeaven>0 then IF NOT ONMARKET THEN breakevenLevel=0 ENDIF // --- BUY SIDE --- //test if the price have moved favourably of "startBreakeven" points already IF LONGONMARKET AND close-tradeprice>=startBreakeven*pipsize THEN //calculate the breakevenLevel breakevenLevel = tradeprice+PointsToKeep*pipsize ENDIF //plce the new stop orders on market at breakevenLevel IF breakevenLevel>0 THEN SELL AT breakevenLevel STOP ENDIF // --- end of BUY SIDE --- IF SHORTONMARKET AND tradeprice-close>startBreakeven*pipsize THEN //calculate the breakevenLevel breakevenLevel = tradeprice-PointsToKeep*pipsize ENDIF //place the new stop orders on market at breakevenLevel IF breakevenLevel>0 THEN EXITSHORT AT breakevenLevel STOP ENDIF endif GRAPHONPRICE breakevenLevel coloured(0,0,255,255)

  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86

  DEFPARAM CUMULATEORDERS = FALSE   TIMEFRAME(1 hour) MAFastH1 = HullAverage[5](close) MASlowH1 = HullAverage[13](close)   TIMEFRAME(DEFAULT) MAFastM5 = HullAverage[8](close) MASlowM5 = HullAverage[21](close)   StoK = Stochastic[8,3](close) StoD = Stochasticd[8,3,5](close)   //////////// long=0 short=0   if stok>50 and stok<stok[1] and stok<stod and MAFastM5<MASlowM5 and MAFastH1<MASlowH1 then short=-1 endif if stok<50 and stok>stok[1] and stok>stod and MAFastM5>MASlowM5 and MAFastH1>MASlowH1 then long=+1 endif   // Conditions pour ouvrir une position acheteuse IF NOT LongOnMarket AND long=+1 THEN BUY 1 CONTRACTS AT MARKET ENDIF   // Conditions pour fermer une position acheteuse If LongOnMarket AND (short=-1 or (stok[1]<stok and stok[1]<stok[2])) THEN SELL AT MARKET SELLSHORT 1 CONTRACTS AT MARKET ENDIF   // Conditions pour ouvrir une position en vente à découvert IF NOT ShortOnMarket AND short=-1 THEN SELLSHORT 1 CONTRACTS AT MARKET ENDIF   // Conditions pour fermer une position en vente à découvert IF ShortOnMarket AND (long=+1 or (stok[1]>stok and stok[1]>stok[2])) THEN EXITSHORT AT MARKET BUY 1 CONTRACTS AT MARKET ENDIF     // Stops et objectifs : entrez vos stops et vos objectifs ici SET STOP %LOSS 1   ///2 BREAKEAVEN/////////// once breakeaven = 1//1 on - 0 off startBreakeven = 35 //how much pips/points in gain to activate the breakeven function? PointsToKeep = 5 //how much pips/points to keep in profit above of below our entry price when the breakeven is activated (beware of spread)     ///2/////////////////////////////////////////////// //reset the breakevenLevel when no trade are on market if breakeaven>0 then IF NOT ONMARKET THEN breakevenLevel=0 ENDIF // --- BUY SIDE --- //test if the price have moved favourably of "startBreakeven" points already IF LONGONMARKET AND close-tradeprice>=startBreakeven*pipsize THEN //calculate the breakevenLevel breakevenLevel = tradeprice+PointsToKeep*pipsize ENDIF   //plce the new stop orders on market at breakevenLevel IF breakevenLevel>0 THEN SELL AT breakevenLevel STOP ENDIF // --- end of BUY SIDE ---   IF SHORTONMARKET AND tradeprice-close>startBreakeven*pipsize THEN //calculate the breakevenLevel breakevenLevel = tradeprice-PointsToKeep*pipsize ENDIF //place the new stop orders on market at breakevenLevel IF breakevenLevel>0 THEN EXITSHORT AT breakevenLevel STOP ENDIF endif   GRAPHONPRICE breakevenLevel coloured(0,0,255,255)

  The breakeven is set to 35 (result of backtest). But on Jan. 3rd at 00:00 the system takes a short which shows an MFE of +101.20, so much higher than the breakeven, but the trade is closed at a loss of -1.5.

  On the graph, when I looked at the entry price and the low of the candle, there were approx. 38 points. May be not enough to trigger the Breakeven given the Spread of 4.8. After this entry candle and until the exit, it was was a loss all the way (not possible to have a positive MFE). But how the MFE is +101 then?

  Someone can please help me understand ?

  Thanks

  

  Khaled

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  01/11/2022 at 4:59 AM #185055
  nonetheless

  It might be because the breakeven uses Close ???

  Try replacing it with High (line 65) and Low (line 76)

  This usually gives a better result and would certainly explain why it didn’t trigger at 38 points.

  Could be that the MFE is just wrong. I’ve often seen some incomprehensible numbers in that column.

  1 user thanked author for this post.

  Khaled

  

  nonetheless

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  01/11/2022 at 7:50 AM #185058
  PeterSt

  Hello Khaled – I suppose that you can set the TimeFrame to 1 second for graphing the gain ? Thus only for that –  then back to 1 hour. Then you can see the MFE yourself for this situation ?

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  Khaled

  

  PeterSt

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