From 00a95945e198919e102113754861ae9b66af0729 Mon Sep 17 00:00:00 2001 From: Matthias Date: Fri, 18 Oct 2019 10:00:43 +0200 Subject: [PATCH] Improve assumptions --- docs/backtesting.md | 4 ++++ 1 file changed, 4 insertions(+) diff --git a/docs/backtesting.md b/docs/backtesting.md index d8d4cf00d..6db573224 100644 --- a/docs/backtesting.md +++ b/docs/backtesting.md @@ -195,6 +195,7 @@ Hence, keep in mind that your performance is an integral mix of all different el Since backtesting lacks some detailed information about what happens within a candle, it needs to take a few assumptions: - Buys happen at open-price +- Sell signal sells happen at open-price of the following candle - Low happens before high for stoploss, protecting capital first. - ROI sells are compared to high - but the ROI value is used (e.g. ROI = 2%, high=5% - so the sell will be at 2%) - Stoploss sells happen exactly at stoploss price, even if low was lower @@ -203,6 +204,9 @@ Since backtesting lacks some detailed information about what happens within a ca - Low uses the adjusted stoploss (so sells with large high-low difference are backtested correctly) - Sell-reason does not explain if a trade was positive or negative, just what triggered the sell (this can look odd if negative ROI values are used) +Taking these assumptions, backtesting tries to mirror real trading as closely as possible. However, backtesting will **never** replace running a strategy in dry-run mode. +Also, keep in mind that past results don't guarantee future success. + ### Further backtest-result analysis To further analyze your backtest results, you can [export the trades](#exporting-trades-to-file).