08/10/2021 |
TrendSpider Software Update: New Strategy Tester “Entry Conditions Invalidated” Option
In this update, we provide a new option for our Strategy Tester to enable you to exit conditions when your entry conditions are invalidated. This is designed to make it easier for you to test strategies by reducing the need to input exit conditions in some scenarios.
For example, you may wish to be in a long position only when the EMA 5 is above the EMA 20. Previously, you would need to create two sets of conditions for this strategy. On the buy side, you would need to instruct the backtester to open a long position when the EMA 5 is above (or has crossed up through) the EMA 20. You would then need to add an exit condition for the reverse when the EMA 5 is below the EMA 20 or the EMA 5 has crossed down through the EMA 20.
With this update, you no longer have to create the exit condition. Instead, you may select “Entry Invalidated” as your exit condition. This will then enter a trade when your buy conditions are true and exit when they cease to be so.
Please note, this option will not work as expected with “Crossed” conditions, as a cross is invalidated immediately after occurring. Thus, you should only use this exit criterion if you know what you are doing and if it fits the strategy you are testing.
We hope this upgrade is of use in backtesting your strategies and we look forward to bringing you many more!
