How to account for splits when backtesting

Questions about MultiCharts and user contributed studies.
User avatar
STAR_Trader
Posts: 18
Joined: 12 Sep 2012
Location: Tokyo Japan
Has thanked: 4 times
Been thanked: 2 times

How to account for splits when backtesting

Postby STAR_Trader » 11 Dec 2012

Hi,

I use eSignal for data. Whenever an instrument has a historic split, the eSignal software automatically accounts/adjusts for them which keeps everything nice and orderly.

When the data is fed into MC the splits are not accounted for... This is a nightmare.

Attached is a chart for ticker symbol BIB (ProShares Ultra BioTech)

It had a 2:1 share split on the 5th of October 2012 as you can see, it causes all sorts of mess and artificial wild moves...

I have searched the user manual, but I cannot find how to account for or display charts adjusted for splits. Any idea?

Thanks
Attachments
BIB Split Issue Chart.png
BIB Split Issue Chart.png (18.91 KiB) Viewed 179 times

User avatar
Henry MultiСharts
Posts: 8503
Joined: 25 Aug 2011
Has thanked: 1213 times
Been thanked: 2731 times

Re: How to account for splits when backtesting

Postby Henry MultiСharts » 12 Dec 2012

Hello STAR_Trader,

Data providers usually adjust the historical price on their end when there is a split. You just need to reload your chart to load the corrected data.
On the screenshot you have provided you are using Free Quotes data. Please plot a chart with eSignal data and reload it if the data is not adjusted.
You can check backadjusted eSignal, Barchart and IQfeed historical data on the attached screenshot.
Attachments
BIB_Split.png
BIB_Split.png (55.61 KiB) Viewed 189 times


Return to “MultiCharts”