Backtesting with Volume Bars

[shooly76]

Hello..I'm currently building and backtesting a strategy using 1000 Volume candles rather than the usual Tick candles.

Will the results be close to what I should expect in market replay and live trading?

I'm only asking because a few years back (NT7).. I backtested strategies using Renko bars and the actual fills were not correct. The backtest results showed an insanely high total net profit for all strategies tested.. 58%-60% profitable! Needless to say none of these strategies using Renko bars worked in Market Replay.. much less live trading.

So my question is this: Will Volume candles backtest more accurately than Renko bars?

[NinjaTrader_ChrisL]

Hi shooly76, thanks for your question.

Renko bars are unreliable in a backtest and should not be used to backtest a strategy because the re-draw their open based on the direction of price. I would only recommend testing a Renko strategy with the playback connection. To answer the question directly, any bar that is not Renko would be better suited for backtesting.
NinjaTrader uses the algorithm described below to ensure backtest order fills are as accurate as possible:

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

Please let me know if I can assist any further.