I am trying to build a strategy where:
- if price crossabove(high, indicator[0],1) && open[0] < indicator[0]; then enter long.
- if price crossbelow(low[0], indicator[0],1) && open[0] > indicator[0]; then enter short.
After back testing it and going through the chart i realized that some of the trades where these conditions were valid were not taken.
So alternatively, I translated cross above/below by changing the rules to:
- if price high[0] > indicator[0] && open[0] < indicator[0]; then enter long.
- if price low[0] < indicator[0] && open[0] > indicator[0]; then enter short.
This combination gave me significantly different results when comparing it to cross above/below.
Can you please explain the difference between the two set ups and why it gives different results when running backtests on each?
Please find attached test strategies and runs i did to show you the results.
The results of the below strategies will be uploaded in my next reply.
Comment