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09/13/2022 |

TrendSpider Software Update: New Backtesting & Trading Bot Exit Conditions w Strat Smart Checklists

Hello, traders, and welcome to another software update! This time, we’ve brought some highly requested functionality to the Strategy Tester and the Trading Bots: Immediate exits! Details after the jump!

New Backtesting & Trading Bot Exit Conditions

Users of our Strategy Tester and Trading Bots functionality have long requested the ability to exit a trade at the moment price hits a specific target level. In the past, this was limited to candle closes, meaning, the candle had to close in order to trigger the exit. Now, instead of having to wait for the candle to close, when you use the ‘Take Profit’, ‘Stop Loss’, or ‘Trailing Stop’ options, you will exit your trade the moment price meets your specific requirements.

As can be seen in the image below, next to each of the above-listed exit options is a new ‘After candle closes’ prompt that can be toggled on or off. You now have the ability to define your exit more precisely, choosing between exiting immediately or once the candle closes.

This functionality becomes increasingly useful as the time frame being used within the strategy or bot gets larger.

Let’s say, for example, you’ve entered into a trade on the open of a daily candle with a ‘Take Profit’ target of 10%. It’s possible that your target could be hit intraday and then give back some of what it gained by the close. Take the example chart pictured below. The target was hit around lunchtime and the stock ended up closing 3% lower than the original target. With the old functionality found on the platform, we would have gotten out of this trade at the end of the day because our profit target was, in fact, hit, however, we would have only made a 7% gain instead of the full 10%.

One can imagine the frustration presented by a stop loss or profit target being hit early on in the session but the position not actually closing out until the timeframe candle being tested actually closed.

This new functionality solves that problem, allowing traders much more accurate exits and, therefore, a much more realistic view of how their strategy works as well as the potential for increased gains and decreased losses.

New Strat Smart Checklists

In addition to the new exit functionality described above, we’ve also added two new Smart Checklists to the default selections available to all TrenSpider users. They were specifically created with The Strat trading community in mind, and they’re called:

  • Core Strat Patterns 3x
  • Full Time Frame Continuity

A Smart Checklist is a widget option that is accessible through the ‘Sidebar’ button. Simply click the sidebar button, select ‘Add New Widget’, then select the ‘Smart Checklist’ option.

Next, click the drop-down menu in the Smart Checklist and search either ‘Core Strat Pattern 3x’ or ‘Full Time Frame Continuity’. Select the checklist you’d like and the conditions will load automatically.

Core Strat Patterns 3x automatically scans for the type of bar that’s occurring on the Daily, Weekly and Monthly time frames. Using this script, you can quickly know what pattern is being formed on every time frame you’re interested in without having to have all the time frames on your chart at once. The green boxes within the smart checklist denote which type of candle is forming on each time frame.

Full Time Frame Continuity is a very commonly sought-after pattern for traders of The Strat and is defined simply as at least four major time frames all showing the same type of candle, either red or green. When all the major time frames are in agreement, there is more confidence in the continuation of price in the direction of the candle color. For this preset checklist, we’ve included every major time frame, from the 1-minute to the monthly, so that a trade can know instantly which time frames are in continuity and which are not! For instance, in the image below, we can easily see that all but the 5m and 65m candles are green!

We hope you find these are two simple, yet resourceful updates helpful and we look forward to adding more functionality related to The Strat and instant alerts in the future!