Backtest

Abz · 2016-09-26T22:06:10+00:00

Hello, When backtesting i have used 5 min chart however i want to see longer periode and if i chose 1 hours or 2 hours frame i get more historical data. My question is when backtesting let say 4 hour chart , does the program know when the stop loss occured or profitt target occured within that candle stick on 4 hour? or does it just look at the close price?

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09/26/2016 at 11:06 PM #13773 quote

Abz
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Veteran

Hello,

When backtesting i have used 5 min chart however i want to see longer periode and if i chose 1 hours or 2 hours frame i get more historical data. My question is when backtesting let say 4 hour chart , does the program know when the stop loss occured or profitt target occured within that candle stick on 4 hour? or does it just look at the close price?

09/27/2016 at 7:24 AM #13781 quote

Stef
Participant

Average

No. Current version will always assume that the profit was hit first – leading to very misleading and incorrect results. PRT are working on fixing this in the next version – they call it tick by tick testing. Other platforms call this look inside bar testing. You will find a lot of mention about this in various places on this web site. Be careful – if your backtest results look to good to be true, they probably are.

Stef

09/27/2016 at 8:10 AM #13784 quote

Nicolas
Keymaster

Legend

I recently opened a thread about the new backtest engine here: http://www.prorealcode.com/topic/tick-per-tick-backtest-to-come-soon/
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