There are several vendors charting system like Renko, rangebar, tick chart and so on.
It is easy to attach EA and run EAs on these types of charts.
However, back testing EA on these charts is real problem.
Some of the vendors have their methods on how to back test but these methods do not back test accuratly.
Most of the time these backtesting results give very optimistic and very profitable equity curves but in reality that do not match with real/live account.
According to my observation, the reason behind this is the way these bars are generated from standard M1 chart.
In some cases I found that the tick movements in these Bars are not in the same order as they are in M1 chart and as a result STOPLOSS used in EA run on these chart do not exactly taken-out in the same way it would be on NOrmal Bars (like M1, M15,M30,H1 ...). Therefore, during backtesting of these bar closing of (short or long) of orders results in profit which in reality it would have resulted in Stop Loss.
This is serious issue and due to this reason it is very hard to develop/test EA on such charts.
Does anyone know how to test EAs accuratly on these types of chats?
Any commnets on this will be greatly appreciated.
It is easy to attach EA and run EAs on these types of charts.
However, back testing EA on these charts is real problem.
Some of the vendors have their methods on how to back test but these methods do not back test accuratly.
Most of the time these backtesting results give very optimistic and very profitable equity curves but in reality that do not match with real/live account.
According to my observation, the reason behind this is the way these bars are generated from standard M1 chart.
In some cases I found that the tick movements in these Bars are not in the same order as they are in M1 chart and as a result STOPLOSS used in EA run on these chart do not exactly taken-out in the same way it would be on NOrmal Bars (like M1, M15,M30,H1 ...). Therefore, during backtesting of these bar closing of (short or long) of orders results in profit which in reality it would have resulted in Stop Loss.
This is serious issue and due to this reason it is very hard to develop/test EA on such charts.
Does anyone know how to test EAs accuratly on these types of chats?
Any commnets on this will be greatly appreciated.
AshN