General questions

What does Wealth-Lab 7 have over Version 6.9?

Version 7 is an all-new modern platform built for Windows 10 in continuous development for enhancements and extensions. Here are some of the hard-hitting new features:

  • Connections for multiple brokerages for automated trading, streaming, and historical data - including cryptocurrency trading!
  • Fast optimizations using multiple CPU cores
  • Overhauled backtesting engine which processes bar-by-bar so you can interact with the equity curve and other simulation aspects dynamically
  • Extremely versatile and configurable Strategy Building Blocks - programming not required!
  • Unique new tools like the Candlestick Genetic Evolver and Indicator Profiler

How do I get my license?

After you register on wealth-lab.com and pay for a subscription plan, start WL7 and click "Download License" from the Help menu.

If I purchase Wealth-Lab can I use it on my laptop as well as my desktop?

Absolutely.

Is it possible to do multi-currency backtests with Wealth-Lab?

Not yet, but this is on our short list for implementation.

Basic usage

What happens if my data source has some trouble?

WL7 supports fallback when downloading data, and it will try to get it from the next preferred data provider.

Why are all my backtest trades negative?

Your position size is very small for the commission plan you've chosen in Wealth-Lab's Backtest Preferences.

Every time I run a Strategy I get a different result. Why?

This happens because your simulation results in too many trades for the simulated equity. You can see how many "missed" trades you had by examining the Metrics Report, NSF Positions. Each time you run the backtest, WL7 randomly takes some of the possible candidate trades, resulting in different outcomes.

Solutions:

  1. Reduce the position size.
  2. Assign Transaction.Weight to trades. See the Transaction Weight Property in the QuickRef.

I want to test a strategy that buys and sells with stop/limit orders on the same bar.

You can't realistically backtest with stop and limit orders on the same bar as the intra-bar price dynamics is unknown. What is reliably known is that the open occurred before all the other prices and that the close occurred last.

What are NSF positions?

NSF (Not Sufficient Funds) Positions are transactions that failed to become a position in the backtext due to insufficient simulated cash/buying power to take the trade. You can choose to retain or drop the NSF positions on a per strategy basis, on the Strategy settings tab (with live trading consequences). See Wealth-Lab Help > Backtest Preferences for details.

My backtest has many trades not included due to not sufficient funds (NSF), what to do?

This happens when, 1) 100% equity sizing is used, and more generally when, 2) a strategy has too many trade candidates for the available buying power. Market order strategies can virtually eliminate NSF Positions by switching the Position Sizing Settings > Basis Price to "Market Open next Bar".

Is it possible to optimize the position size?

Yes, by assigning a custom Quantity to the Transaction.

Data

Why a WealthData DataSet like Nasdaq 100 has almost 300 symbols and not 100 ?

WealthData DataSets eliminate survivorship bias, including the companies that were in the index at some point in time but later were removed. Backtesting on WealthData indices gets you a true to life result because it correctly applies the stocks that were in and out of the index at the point in times of your simulated entries.

Programming

How do I start programming Wealth-Lab strategies in C# ?

The language Wealth-Lab speaks is C#. To create Wealth-Lab strategies from scratch, you need to have the basic knowledge of such language concepts as: language syntax, data types, operators and statements, loops, classes, Date/Time and String classes. Here are some ideas for an online C# class or book that will help you learn programming and become familiar with the key language concepts:

Migrating from Wealth-Lab 6

I'm a WL6 user, will I get WL7 for free?

Legacy customers with active license(s) have a time-limited subscription to WL7 without charge on special conditions. See here.

Can WL7 and WL6 co-exist on the same machine?

Yes. Both versions are independent and don't share directories or any files.

Will Wealth-Lab 7 recognize my strategies from WL6?

No, but they're pretty easy to convert, and we'll be happy to assist if needed. To help get started, download and install the Version 6.9 QuickRef with Version 7 Equivalents from the Wealth-Lab Wiki.

Where did "Use worst trades in portfolio simulation" go?

Version 7's backtest engine evaluates each symbol for entries (and exits) in parallel on a bar-by-bar basis. Consequently, it's not possible to determine which of the candidate positions would have been the worst at the time of entry.

I'm building a strategy from Blocks and missing OR Divider

It's not gone, just different. Now you drop another Entry/Exit block with another condition to be ORed. For more info, see Building Blocks > Building Block Rules in the Help Guide.