Strategy Testing with Heikin-Ashi

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dtl
Posts: 3
Joined: 30 Oct 2012

Strategy Testing with Heikin-Ashi

Postby dtl » 30 Oct 2012

Hello,

When strategy testing with heikin ashi candles test results can be very inaccurate.

Since when buying or selling market at the next candle the strategy tester assumes that the market actually opened at as per the Heikin ashi candle.

In reality the market can actually be a considerbale distance from the Heikin ashi value.
Is there any way to take account of this within multicharts?

Thanks

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Andrew MultiCharts
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Re: Strategy Testing with Heikin-Ashi

Postby Andrew MultiCharts » 31 Oct 2012

Hello dtl,

The thing is that Heiken Ashi chart prices are different from identical regular chart prices, it has specific formulas for calculation of OHLC. So, if you use HA chart as base data series for strategy calculation, then you should expect that prices for generated orders may slightly differ from real prices.
You may want to use regular subchart as data1 and apply your strategy there for placing orders? then make it hidden and add second data series of the same instrument, but as HA subchart. So visually you will see HA graph, but the strategy will be calculating and all orders will be based and filled on regular invisible data then, though displayed on HA graph.


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