Hi rollingstone,
Those are all good points. Please help me understand why you think manual back-testing better than auto back-testing ( I tend to think that auto-back-testing is as honest as it gets
).
As for the details - apart from the time of day and letting the price pull back from the KS line to cover the spread, the backtest includes all the details of the strategy (as I understood it from the thread). I ran the auto-optimizer inorder to find the best parameter combinations (changing the trailing stop etc. distance from EMA etc). but so far 1777 combinations all produced negative results.
I will add the time of day and KS pullback and re-test.
28/8/2005:
These are the results of the updated backtest:
Profit factor of 1.69, drawdown of about 1%, profit of about 3.5 % after 81 trades.
Tested best when the SL is 40 updated to +10 when hitting 15 and TS of 7 north of +17 pips.
One modification I made to the entry rule is to only take signals if the "Tenkan-Sen" is on the right side of the "cloud" (above for long, below for short). Without this modification my backtests barely broke even.