On this tutorial, I will present you the way I backtest a number of timeframes on the similar time.
You may discover ways to setup a number of charts and have all of them run on the similar velocity when you backtest.
That is straightforward to do.
There are various software program options that may do it, but it surely will not be apparent easy methods to do it, if you do not know what to search for.
This is what it seems to be like on my laptop computer.
As you’ll be able to see, I’ve the Every day, 4-hour, 1-hour and Weekly charts open.
Having a number of charts working on the similar time has many benefits, which you will find out about on this tutorial.
If you wish to study extra about backtesting on the whole, make sure you learn my backtesting information on easy methods to backtest in any market.
Alright, let’s get into it…
Why Backtest A number of Timeframes on the Similar Time?
There are various causes that you could be wish to have a number of timeframes open on the similar time.
I really feel that almost all merchants will profit from watching multiple timeframe when backtesting.
First, when you’ve a number of charts open on the similar time, you do not have to flip backwards and forwards between the totally different timeframes to examine issues like pivot factors, trendlines or assist/resistance ranges on greater timeframes.
This alone can prevent a ton of time.
One more reason to make use of a number of timeframes is you can take trades on all of these timeframes.
As an example that you simply wish to backtest the identical buying and selling technique on the Every day, 4-hour and 1-hour charts.
Being able to take trades on all of these charts without delay shall be a lot quicker in comparison with testing every timeframe individually.
Now, I’ve personally discovered this a little bit arduous to do prior to now.
However when you’ve got 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 can’t solely check a number of timeframes on the similar time, however you may also have charts of a number of markets working on the similar time.
I will get into a number of markets in one other tutorial, however for now, let’s check out easy methods to setup the charts.
Find out how to Setup a Backtest With A number of Timeframe Charts
I will show how to do that with NakedMarkets as a result of that is what I take advantage of.
However the course of shall be comparable, no matter which software program you utilize.
This technique additionally works in Foreign exchange Tester and different software program.
First, open NakedMarkets and begin a brand new backtest.
Choose the settings in your backtest, together with the market you wish to check.
As soon as you’ve got 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, hold 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 even layer the charts if you’d like the charts to be larger.
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’ll be able to see the timeframe of every chart within the higher left nook of the window.
After 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 choosing 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, based mostly on the timeframe that is presently chosen within the Step setting.
To take a commerce, merely right-click on any chart and enter a commerce.
Since all the charts are shifting ahead on the similar velocity, it does not matter which chart you’re taking the commerce on.
Your trades will seem on all charts on the similar time.
It is often greatest to pick a low timeframe within the Step setting as a result of that can present you the best degree of element throughout all of the charts.
Doing this may even enable you see what candles appear 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 will result in impulsive buying and selling.
Watching a candle unfold will enable you perceive the feelings you can probably undergo because the candles develop.
Alright one final thing…
You’ll be able to 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 know the way to do a backtest on a number of timeframes on the similar time.
Utilizing this technique will prevent a whole lot of time and enable you discover worthwhile buying and selling methods quicker.
This may be executed 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 take advantage of.
All that is left is to complete your first backtest.
Go for it!
