Hello,

While trying to test a moving average crossover strategy in WLD, I've been having a lot of trouble. Maybe I'm making a beginner mistake by missing something obvious. I want to test a simple 50 / 200 EMA crossover strategy on VOO using a 60 minute or daily chart.

I've created a new strategy from rules, and dragged in the following:

Buy at market
- condition: fast moving average (50) is above slow moving average (200)

Sell at market
- condition: fast moving average (50) is below slow moving average (200)


When I run this over the past ten years on VOO on the 60 minute and daily charts the simulation doesn't always buy when there is a crossover.


So I also tried this:

Buy at market
- condition: fast moving average (50) crosses above slow moving average (200)

Sell at market
- condition: fast moving average (50) crosses below slow moving average (200)


And this didn't work either. So also tried "buy at close" and "sell at close" too, but this doesn't fix the problem. What am I doing wrong?

Hello,

First of all, double check your position sizing settings or simply switch them to a Raw Profit mode to ensure at least 1 share can be purchased.

Suggestion for future: when saying something like "the simulation doesn't always buy when there is a crossover", it's better to illustrate that with a full size chart of WL window with its settings visible and a chart focused on the date there's no trade when you think it should be there.

Hi Eugene,
Thanks for the help. I was using portfolio simulation mode, with starting capital of $10,000 and 100% of equity position size. By switching to raw profit mode it now buys and sells on the crossovers as expected. I'll include some images to illustrate my question better next time.

Glad to have helped.

QUOTE:
I was using portfolio simulation mode, with starting capital of $10,000 and 100% of equity position size.

It's a FAQ (on top): I'm using 100% Equity position sizing and strategy doesn't seem to use all capital and/or there are trades not included due to insufficient capital.

When you're done with the theory I'm happy to tell that WL7 solves this issue by exposing the option to adjust the basis price to "open next bar" vs. "this bar's close" (a.k.a. "Skipped trade solution") out of the box: