Methods to Manually Backtest A number of Timeframes on the Identical Time

On this tutorial, I am going to present you the way I backtest a number of timeframes on the identical time.

You will discover ways to setup a number of charts and have all of them run on the identical velocity when you backtest.

That is simple to do.

There are a lot of software program options that may do it, nevertheless it might not be apparent methods to do it, if you do not know what to search for.

Here is what it seems like on my laptop computer.

As you’ll be able to see, I’ve the Each 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 be taught extra about backtesting usually, make sure you learn my backtesting information on methods to backtest in any market.

Alright, let’s get into it…

Why Backtest A number of Timeframes on the Identical 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 multiple timeframe when backtesting.

First, when you have got a number of charts open on the identical time, you do not have to flip forwards and backwards between the completely different timeframes to test issues like pivot factors, trendlines or assist/resistance ranges on increased timeframes.

This alone can prevent a ton of time.

One more reason to make use of a number of timeframes is which you could take trades on all of these timeframes.

As an example that you just wish to backtest the identical buying and selling technique on the Each day, 4-hour and 1-hour charts.

Being able to take trades on all of these charts without delay will likely be a lot quicker in comparison with testing every timeframe individually.

Now, I’ve personally discovered this slightly exhausting to do previously.

However you probably 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 can’t solely take a look at a number of timeframes on the identical time, however you too can have charts of a number of markets working on the identical time.

I am going to get into a number of markets in one other tutorial, however for now, let’s check out methods to setup the charts.

Methods to Setup a Backtest With A number of Timeframe Charts

I am going to display how to do that with NakedMarkets as a result of that is what I take advantage of.

However the course of will likely be comparable, no matter which software program you utilize.

This methodology 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 take a look at.

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]

It will add one other chart.

If you wish to add extra timeframes, maintain including charts till you have got 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 would 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 possibly can 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 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, primarily based on the timeframe that is at present 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 identical velocity, 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 normally greatest to pick out a low timeframe within the Step setting as a result of that can present you the best stage of element throughout all of the charts.

Doing this may also show you how to see what candles appear to be 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 could result in impulsive buying and selling.

Watching a candle unfold will show you how to perceive the feelings which you could probably undergo because the candles develop.

Alright one final thing…

You possibly can 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 methodology will prevent a number of time and show you how to discover worthwhile buying and selling methods quicker.

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 take advantage of.

All that is left is to complete your first backtest.

Go for it!