Back testing doubt  [SOLVED]

Questions about MultiCharts and user contributed studies.
user99

Back testing doubt

Postby user99 » 18 Feb 2007

Hi,

i hope you can answer me this question.
Suppose that according to my stock trading strategy, which evaluates daily bars, I have a take profit order at $50 and a stop loss order at $46. One day the price opens and closes at $48 with the high at $51 and low at $45.
How does multicharts know which one was hit first, the high or the low, and how does mc closes this trade?

thanks

Guest

  [SOLVED]

Postby Guest » 18 Feb 2007

either the daily range is unrealistic, or the volatility is too high.

either way you get kill if you try to trade a wide range market with a tight stop.

guest99

Question

Postby guest99 » 19 Feb 2007

The numbers are just made up you can put any number in there.
My question is this:
Imagine that both your take profit order and stop loss order are hit on the same say, how does multi charts know which one was hit first, considering that my strategy is evaluating daily bars.

thanks

User avatar
Kate
Posts: 758
Joined: 08 Dec 2006

Postby Kate » 19 Feb 2007

You will find an explanation on the attached screenshot.
Attachments
PriceMovement.PNG
PriceMovement.PNG (18.5 KiB) Viewed 300 times

pcavatore
Posts: 12
Joined: 13 Nov 2006

Postby pcavatore » 19 Feb 2007



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