Backtesting has obvious limitations as we are using OHLC bars/Static and not tick data. I have seen that trailing stops backtesting results are very misleading.
I am now only using SL (not trailing). However, there is still the issue that in back testing, if I am long and the candle is green – it is assuming that I made a profit…even if there was a low which could have triggered my stop before my target profit is achieved. I think I have understood this correctly? I would be grateful if the logic could be explained if I have it wrong.
It seems that backtesting consistently produces the best case scenario….is there a way to change the settings to show the worse case? i.e. my SL would always be triggered before my TP. This would help me in adjusting my SL and TP levels.
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