touch price  [SOLVED]

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RedBerlin
Posts: 81
Joined: 05 Dec 2014

touch price

Postby RedBerlin » 15 Nov 2015

My question is simple....so
If trading share with just 1 tick profit and price touch take profit but back down ,in backtest there is profit yes or no?
My doubt is:if price just touch my profit price but doesnt
Take my share ,in backtest what happen?

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JoshM
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Re: touch price  [SOLVED]

Postby JoshM » 15 Nov 2015

If trading share with just 1 tick profit and price touch take profit but back down ,in backtest there is profit yes or no?
In that case there's a backtest profit of 1 tick, assuming you haven't entered commissions and slippage.
My doubt is:if price just touch my profit price but doesnt Take my share ,in backtest what happen?
The trade will be executed since regular backtesting doesn't take the volume into account. There's also an option for precise backtesting, which apparently also takes the liquidity into account.

But your trade's position in the order queue cannot be backtested, so I wouldn't put too much faith into those backtests. In other words, err on the side of caution and just assume that a certain amount of your trades aren't executed (even though the historical data would suggest that they would fill). You can use the fill limit settings for this, or enter a slippage number even though you're using limit orders.

RedBerlin
Posts: 81
Joined: 05 Dec 2014

Re: touch price

Postby RedBerlin » 15 Nov 2015

Thanks Josh
And with future and cfd is it same or not?

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JoshM
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Re: touch price

Postby JoshM » 15 Nov 2015

And with future and cfd is it same or not?
Yes, how backtesting is performed is independent from the kind of instrument.


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