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Limit Order Execution Assumptions

19 bytes removed, 16:47, 13 February 2013
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Limit orders are filled at a specific price or better (for long better = lower, for short better = higher). In backtesting MultiCharts either works :* Either with all prices between Open, High, Low, Close of a bar, [[Intra-bar Price Movement Assumptions|assuming that all these prices are real]]; or * Or with specific prices only, when 1 tick resolution is chosen or [[How Signals are Calculated|Bar Magnifier]] is used.
Limit order execution assumptions can be modified in the '''Backtesting''' tab of '''Strategy Properties''' window.
There are 4 different variants:
# Chart resolution is 1 tick or Bar Magnifier of any resolution is enabled. '''Backtesting Assumptions''' is set to '''Fill limit order when trade takes place at limit price or better'''.<div style="background-color: #E5F6FF;">'''Example''': Generated order: sellshort limit @ 121; available prices: 120, 122, 125, ...; order is filled @ 122.</div># Chart resolution is 1 tick or Bar Magnifier of any resolution is enabled. '''Backtesting Assumptions''' is set to '''Fill limit order when trade price goes beyond limit price by 3 points'''.<div style="background-color: #E5F6FF;">'''Example''': Generated order: sellshort limit @ 121; available prices: 120, 122, 125, ...; order is filled @ 125.# Chart resolution is '''not''' 1 tick and Bar Magnifier is not enabled. '''Backtesting Assumptions''' is set to '''Fill limit order when trade takes place at limit price or better'''.<div style="background-color: #E5F6FF;">'''Example''': Generated order: sellshort limit @ 121; order is filled @ 121 or better if 121 (or better) is between High and Low of the bar.</div># hart resolution is '''not''' 1 tick and Bar Magnifier is not enabled. '''Backtesting Assumptions''' is set to '''Fill limit order when trade price goes beyond limit price by 3 points'''.<div style="background-color: #E5F6FF;">'''Example''': Generated order: sellshort limit @ 121; order is filled @ 121 if 124 price is between High and Low; order is not filled at all if there is not 124 price between High and Low of the bar.
[[Category:Backtesting]]

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