In this software update, we announce a new capability for the TrendSpider Strategy Tester. Specifically, you are now able to conduct both long and short-biased backtests using data from the pre-market session and the after-hours session on US equities. Read on to learn more about this new feature and how it works.
One of the benefits of TrendSpider’s new NYSE-powered market data feeds for US equities, are we now receive real-time pre-session and after-hours data, which is provided to all customers in their accounts. This will unlock many features in the coming weeks and months, the first of which is the ability to run backtests using intraday data INCLUDING pre-market and after-hours trading.
Enabling this is as simple as checking the “Ext Hours” box on the Strategy Tester toolbar. When checked, this will take into account all data, not just the normal trading session. Here’s how it looks, with the checkbox for enabling extended hours highlighted in a pink circle.
- Full and complete support for extended market session data in the TrendSpider Strategy Tester
- Supports all indicators
- Supports all entry and exit conditions using any combination of indicators and fixed values
- Calculates buy-and-hold and trade delta using after-hours data, enabling a fair comparison
- Highlights forward projection based on past results when a backtest ends with an open position
- Supports both long and short strategies
- Initiates trades during extended hours if conditions are met
- Supports mixed conditionality with other indicators
If you wish to configure a backtest that works the same, but ONLY enters during certain times, you may use the TrendSpider Candle Time indicator as demonstrated below. This takes input in the form of a integer constant value in military time on the EST time zone. For example, for 9:45am enter “0945” into the constant value input box.
As always, when we are talking about backtesting, a few warnings:
- No backtesting platform can properly account for slippage in the market. In a backtest, you always get your fill. That is not always the case in the real world.
- Backtesting does not account for broker commissions or position sizing.
- Backtesting presumes that you are a perfect trader who never gets distracted or makes mistakes.