AutoTester Only Close Positions Entered during the Opposite Signal
The AutoTester checkboxes for "Close any position when entering this situation" are not sufficient, when the signal includes a Neutral phase.
When checked... When the signal transitions Up-Neutral-Up, positions entered on the first Up signal are closed on the second Up signal. This is also a problem, and unrealistic, for Down-Neutral-Down transitions.
When unchecked... Transitions from Up(Neutral) to Down will not close long positions. Transitions from Down(Neutral) to Up will not close short (or long Contra) positions.
A more realistic behavior is to close positions which were entered during the opposite signal. When the signal is Up, allow (optional) closure of positions entered during a Down phase. When the signal turns Down, allow (optional) closure of positions entered during the Up phase.
Ken Reso commented
I can't speak for the others who voted on this item, but I'd consider this to be "completed." The AutoTester allows one to optionally close positions opened under a different scenario. It's not quite "opposite," because that option will close positions opened during a neutral scenario, on change to up or down.
Bruce Zeuli commented
The above sounds logical but could the idea first be backtested? If this new option backtests well it should be added to the Autotester. If not the Autotester user base should be informed that it did not improve returns and so is uncessary.