On this tutorial, I will present you ways I backtest a number of timeframes on the identical time.
You may discover ways to setup a number of charts and have all of them run on the identical pace whilst you backtest.
That is straightforward to do.
There are a lot of software program options that may do it, however it is probably not apparent the best way to do it, if you do not know what to search for.
Here is what it appears to be like like on my laptop computer.
As you’ll be able to see, I’ve the Day by day, 4-hour, 1-hour and Weekly charts open.
Having a number of charts working on the identical time has many benefits, which you will find out about on this tutorial.
If you wish to study extra about backtesting generally, be sure you learn my backtesting information on the best way to backtest in any market.
Alright, let’s get into it…
Why Backtest A number of Timeframes on the Similar Time?
There are a lot of causes that you could be wish to have a number of timeframes open on the identical time.
I really feel that the majority merchants will profit from watching a couple of timeframe when backtesting.
First, when you’ve a number of charts open on the identical time, you do not have to flip forwards and backwards between the completely different timeframes to verify issues like pivot factors, trendlines or assist/resistance ranges on increased timeframes.
This alone can prevent a ton of time.
Another excuse to make use of a number of timeframes is that you may take trades on all of these timeframes.
As an example that you just wish to backtest the identical buying and selling technique on the Day by day, 4-hour and 1-hour charts.
Being able to take trades on all of these charts without delay shall be a lot sooner in comparison with testing every timeframe individually.
Now, I’ve personally discovered this just a little exhausting to do up to now.
However if in case you have Guidelines setup on every of your charts, then you’ll be able to have your backtest pause each time a buying and selling setup situation occurs.
Lastly, you cannot solely check a number of timeframes on the identical time, however you may also have charts of a number of markets working on the identical time.
I will get into a number of markets in one other tutorial, however for now, let’s check out the best way to setup the charts.
How you can Setup a Backtest With A number of Timeframe Charts
I will display how to do that with NakedMarkets as a result of that is what I exploit.
However the course of shall be related, no matter which software program you employ.
This technique additionally works in Foreign exchange Tester and different software program.
First, open NakedMarkets and begin a brand new backtest.
Choose the settings on your backtest, together with the market you wish to check.
As soon as you have completed the setups, you will see a clean chart.
Now go to: File > Add new chart > [your current market]
This can add one other chart.
If you wish to add extra timeframes, maintain including charts till you’ve all the charts you need.
Then resize every chart so all of them match properly in your display screen.
You can too layer the charts if you would like the charts to be greater.
Now choose every chart and alter the timeframe to the one you wish to show on that chart by clicking on the timeframe selectors within the toolbar.
You may see the timeframe of every chart within the higher left nook of the window.
Upon getting setup the timeframes for every chart, choose the timeframe that wish to advance all the charts at.
You are able to do this by deciding on the Step timeframe within the toolbar, subsequent to the Play button.
For instance, if you choose the 5-minute timeframe, all charts will advance in increments of 5 minutes.
Now click on the Play button and the charts will transfer ahead in unison, primarily based on the timeframe that is at the moment chosen within the Step setting.
To take a commerce, merely right-click on any chart and enter a commerce.
Since all the charts are transferring ahead on the identical pace, it does not matter which chart you’re taking the commerce on.
Your trades will seem on all charts on the identical time.
It is often finest to pick a low timeframe within the Step setting as a result of that may present you the best degree of element throughout all of the charts.
Doing this can even enable you see what candles seem like on the the upper timeframe charts, earlier than they shut.
Many occasions, merchants do not wait till a candle closes earlier than taking a commerce.
This may result in impulsive buying and selling.
Watching a candle unfold will enable you perceive the feelings that you may probably undergo because the candles develop.
Alright one last item…
You may add Guidelines to every chart to take trades or just pause the chart each time your setup occurs.
To do that, merely drag the Rule you wish to use from the folders on the left, onto the chart you wish to apply it to.
Conclusion
Now you understand how to do a backtest on a number of timeframes on the identical time.
Utilizing this technique will prevent numerous time and enable you discover worthwhile buying and selling methods sooner.
This may be completed on many various backtesting platforms, so discover out in case your software program can do it.
In case your software program cannot do it, then think about using NakedMarkets.
It is what I exploit.
All that is left is to complete your first backtest.
Go for it!
