Articles on: Backtests

Backtest Input Parameters

Backtest Parameters

To conduct any backtest in Tradetron there are certain parameters that users have to input for successful backtesting of strategies.

Date Range – Tradetron has historical data available since 1st Jan 2020 to conduct backtests. We have predefined ranges like last 6months, 18months etc or you can also add a custom date range

Note - If trading lists, each instrument will consume backtest credit. Eg- If you are trading a list of 10 stocks for a period of 360 days. It will consume 2*10= 20 credits
Candle frequency - Users have an option to select their choice of candle frequency from 1min, 5min, 10min, 15min, 30min, 1hr and full day(1D). If you are backtesting a strategy which uses daily timeframe, it would be advisable to select candle frequency as Full day or lower than Full day. Similarly, if you are backtesting a strategy which uses multiple time frame like 15min and 1hr, select candle frequency less than or equal to the lowest time frame in the strategy, in this case it would 15min. The smaller the candle frequency, the more computation is needed which increases the time to complete the backtest.
Note: If your strategy uses time conditions for entry/exit or uses LTP keyword anywhere in the strategy, 1min candle frequency would provide more accurate results.

Trade Price – Unlike other backtesting services, Tradetron provides the users with the power to select the trade price of execution. There are two options either Open or Close. Trade price essentially means the price at which the trade is executed. If you are backtesting a strategy that relies on entry after crossovers or any technical indicators, Open Price would be well suited for the purpose. If you are backtesting any strategy that relies on entry on close price basis, select Close in Trade Price

Type – Here, you get an option to select the type of strategy you are backtesting, Intraday or Positional. Kindly select the appropriate option depending on your strategy.
If you select Positional, it will further provide 3 Options. Select the one that best fits your strategy
None –Select this, if you are trading stocks which do not have an expiry

Weekly- Select this, if you are trading Weekly Options

Monthly –Select this, if you are trading monthly Options or futures

Updated on: 26/09/2022

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