Backtesting vs Live Trading - MultiCharts

Backtesting (strategy calculation on historical data) is an essential tool for a certain type of strategies. However, it has some limitations as every simulator has. When you are trading live, the market always responds to your actions. Your trades and submitted orders always have impact regardless of how small your … See more

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FAQs about Backtesting vs Live Trading - MultiCharts Coupon?

Does strategy 2 backtesting affect live trading performance?

Strategy 2 average position holding time is several seconds (scalping). In the first case latency factor is negligible, so strategy 1 backtesting results will be more or less the same as live trading performance. However, in case of strategy 2, broker latency can change live trading performance dramatically compared to backtesting. ...

How can I get information on price movement in multicharts backtesting?

While it is not possible to get information on the actual price movement within each bar from these four values, in MultiCharts Backtesting accuracy is improved by incorporating Intra-bar Price Movement Assumptions logic. ...

Can I trade more than one chart?

By default from one chart you can trade only the instrument that is the main data series. You cannot send orders to any additional data series of the same chart. You need to have an individual chart for each instrument you want to trade. ...

Is backtesting a good tool?

Note: Past performance is not necessarily indicative of future results. Backtesting (strategy calculation on historical data) is an essential tool for a certain type of strategies. However, it has some limitations as every simulator has. When you are trading live, the market always responds to your actions. ...

How do I playback a chart if I have different charts?

Since you can have different charts (i.e. 5 tick, 13 minute, or 5 day), each bar on the chart represents different amount of data. You can playback the market "as is", which means one update equals one bar on your chart. You can also choose “Tick by Tick”, “Second by Second”, "Minute by Minute" or "Day by Day" as alternative playback options. ...

What is a real-time trading strategy?

In real-time trading, a strategy will monitor and respond to real-time data on tick-by-tick basis. Historical data available for backtesting will, in most cases, be in the form of time-based bars (minute, daily etc.) based on a group of ticks, with only Open, High, Low, and Close prices available. ...