Need Clarification

[Titli]

Hi,

I use NT8 and noticed my strategy works better on the 1 Min Heiken-Ashi chart than the standard 1 Min chart. I get better results using the Heiken-Ashi charts in the strategy analyzer, back-test and sim-101. Is it ok to assume that maybe my strategy can perform better on the Heiken-Ashi chart and the results I'm getting are legit on both charts?

[NinjaTrader_PaulH]

Hello Titli,

Thanks for your post.

In general, we do not recommend testing Heiken-Ashi or Renko based bars in the Strategy analyzer due to the false information these exotic bar type present. The purpose of these bar types is to assist with the visual concept of trending and they do so by presenting false price information. In both cases, the Strategy analyzer only uses the finished bar and does not use the ticks that make up the bar and will work with the OHLC of these bars which are not the actual underlying price values.

Running your strategy with the PlayBack connection and using market replay data, or live data with the sim account, will produce more realistic results as in both cases the exotic bars will form based on the underlying tick data.

References:

https://ninjatrader.com/support/helpGuides/nt8/?bar_types.htm#UnderstandingHeikenAshiBars

https://ninjatrader.com/support/helpGuides/nt8/?how_bars_are_built.htm

https://ninjatrader.com/support/helpGuides/nt8/?discrepancies_real-time_vs_bac.htm

https://ninjatrader.com/support/helpGuides/nt8/?playback_connection.htm

[Titli]

Thank you Paul for that information!