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backtesting linebreak

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    backtesting linebreak

    Hello,
    I am not sure how much I can rely on backtest on linebreak charts. The strategy trades intraday only, with exit on close and trades at bar open, not intrabar. I did run market replay data test for one week with one settings and backtested it too and it did the same (12) trades.(of course +- slippage). Do you think I can trust linebreak chart backtest given this test results? Is there anything I shoul be aware of? I tested minute based linebreaks with 2 breaks. How number of breaks or volume base linebreaks could be biased or would it be trustworthy? I am asking as "the results are too good to be true"
    Thank you
    N.

    #2
    Hello nicknamed,
    Unfortunately we cannot comment how reliable a strategy or a bar type may be but there can be discrepancies between backtest results and realtime results. Please refer here for more http://www.ninjatrader.com/support/h...ime_vs_bac.htm

    Please let me know if I can assist you any further.
    JoydeepNinjaTrader Customer Service

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      #3
      You did not get what I was asking about, I know the discrepancies. - have multibroker license for more than two years. The market replay data and regulat backtest on minute bars gives me the same results,also I tested 12 trades in one week of linebreak charts and were the same as backtest. The thing is that I do not know how nt handles linebreak charts during backtest, in other words, if there is anything I should be aware of regarding linebreak charts construction and backtesting it (for example volume base linebreak charts or even minute based linebreaks).
      N.

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        #4
        Hello nicknamed,
        There nothing special one should be aware off while backtesting line break charts. However since you have test it with one weeks of data (in market replay) there can be a case of curve fitting and its a good idea to test it further with a different dataset.

        Please let me know if I can assist you any further.
        JoydeepNinjaTrader Customer Service

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