Schizophunk wrote:

Hi, so if i am understanding well, it is not a good idea to backtest systems with stop orders if you dont have a “tick by tick” data, right?

And this is basically because you need to know the information inside each candle to know the exact point of execution of your stop orders.

It is like this?

it might absolutely make sense to back test system with stop orders even without tick data: it is not about what kind of orders you use for entries and exits. it’s about if your system triggers (lot, or really a lot of) entries and exits or possibly various exits (in terms of stoploss and takeprofit) intra-bar. “worst” of all being cases if you have system triggering frequently entries (be it “at market” or entry with stop-order) and stoploss orders and takeprofit orders  – all 3 of them in the same bar. without tickdata backtest makes zero sense then. and even with tick data: a) I would personaly not trust so extremely the tick-data quality and b) PRT is having I think not so high limit of bars which can be backtested “intra-bar”, so tick by tick. so even if you have 1 million bars of historical data on let’s say 1H time frame it does not mean by far that you will be able to backtest 1 million 1H-bars intra-bar. anyway, I think it’s good idea in one or other way try to avoid entries&exits or several type of exits on the same bars. widen stoploss, widen profit target for example. or without widening anything one can go into smaller timeframes for order execution while calculating entry/exit signals on higher one. so kind of multi-timeframe setup.

have fun

justisan