Limit SL Exit inside a GAP

• 01/21/2022 at 4:19 PM #186210
  ZeroCafeine

  hi everyone

  Since a few days I try to understand and I make some tests with Probacktest, I realize for a given transaction that the software execute my limit SL inside a GAP,

   

  Unless I am mistaken, if the software makes us go out in the middle of a Gap, I wonder about the veracity of the backtest ? or maybe I don’t understand somethink ?.

  you can see in the photos I add in the thread, the limit exit is at price of 35,24€, but they haven’t cotation at this price

   

  Thank you in advance

  

  ZeroCafeine

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  01/21/2022 at 4:34 PM #186214
  robertogozzi

  Do not double post. Ask your question only once and only in one forum. All double posts will be deleted anyway so posting the same question multiple times will just be wasting your own time and will not get you an answer any quicker. Double posting just creates confusion in the forums.

  Thank you 🙂

  I know you have more chances for answers here, but this will scatter info among several topics (I’ll close the other one).

   

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  ZeroCafeine

  

  robertogozzi

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  01/21/2022 at 6:11 PM #186224
  ZeroCafeine

  tks you for your answer, and tks you for the rules,

   

  merci pour votre réponse et merci aussi pour le rappelle des lois, j’ai pourtant patienté sur le forum en français mais je pense pas assez, je veux essayer de poster toujours mes messages en anglais même avec en anglais pourri

  thank you for your answer and thank you also for the reminder of the forum’s laws, I have been waiting on the french forum but I don’t think enough 🙂 , I going to try to always post my messages in English even with crappy English

  

  ZeroCafeine

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  01/21/2022 at 7:19 PM #186238
  nonetheless

  ZeroCafeine wrote:

  I wonder about the veracity of the backtest

  you mustn’t think of a backtest as a true representation of ‘what would have happened’. Lots of things are not well accounted for – such as gaps, slippage, changes in the spread etc.

  It is still a useful tool, but best to regard it as a general impression of past performance.

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  nonetheless

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  01/22/2022 at 12:41 PM #186283
  ZeroCafeine

  Thank you very much for your answer, I suspected it, and now you have confirmed it,

  I also completely agree with you that the Backtest are not an ideal representation for the future but I would have said at least a good representation of the past history . I also agree with you for the Spread and the Slippage, but I find it a damage that the software execute your sl in a gap where there is no quotation

  tks again for your kind answer nonetheless  😉

  

  ZeroCafeine

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  01/22/2022 at 1:00 PM #186284
  GraHal

  ZeroCafeine wrote:

  execute your sl in a gap where there is no quotation

  Was the gap at market open? What is typical spread for that Instrument during market closed?

  The open price shown on your chart of the green bar is the mid price and so spread / 2 (half the spread) will be below that mid price.  Isn’t it likely that the spread extended down to the SL execution price?

  What is that red rectangle showing below the green bar at open … have you drawn that in?

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  GraHal

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  01/22/2022 at 2:16 PM #186292
  ZeroCafeine

  Hi GraHal how are you ? I hope fine.

   

  For your understanding and so that I can be clearer in my questions :

  • it’s just a share and not an indice, the share name is “RUBIS“
  • I don’t know if it’s a problem of speard, I think the software just execute a SL Limite at the price you specified even this price it’s dosen’t exist
  • I drew the 2 small rectangles to include the prices to make it more understandable in our conversation

  now if it’s a software problem then we will try to find solutions, I’m not sure if it’s possible to create a condition with an IF for example to check if the execution of the TP or the SL is not in a gap, Maybe some people will say that it doesn’t make sense and that it is useless, or maybe other one have solution for that, or maybe I’am wrong at all,

   

  I also want to use the Walk Forward for my understanding, but what’s the point of doing that if the data is already wrong (I don’t exactely what is the Walk Forward)

  

  ZeroCafeine

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  01/22/2022 at 2:41 PM #186294
  GraHal

  I just re-read your original post, this is on backtest and so my previous comments re spread widening are nonsense ! 🙂   You were too polite to not say!  🙂

  What value for spread did you enter (or is showing now as a default … if you do not enter spread?) in the backtest engine when you were doing your tests?

  See attached at red arrowhead where we enter spread.

  

  GraHal

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