Back testing an indicator, to see where it would have alerted in the past.

[trader_12345]

Hi,

 

I am having an indicator made in the market where I can set the length of the tail in pips, and the other usual pin bar criteria.

 

I want to be able to adjust the inputs, then back test the indicator with historical data.

 

Ideally, when finished, there are clear indications on the chart where the indicator would have triggered (pin bars meeting criteria)

 

Will this show on the backtest, or would the indicator have to be programmed in the first place, to show a visual mark when criteria is met, like an arrow ect…

[Eranga Thilina Dhanushka Gallage]

trader_12345:

Hi,

 

I am having an indicator made in the market where I can set the length of the tail in pips, and the other usual pin bar criteria.

 

I want to be able to adjust the inputs, then back test the indicator with historical data.

 

Ideally, when finished, there are clear indications on the chart where the indicator would have triggered (pin bars meeting criteria)

 

Will this show on the backtest, or would the indicator have to be programmed in the first place, to show a visual mark when criteria is met, like an arrow ect…

Can you clarify your question more ?

As per my understanding, once you added your indicator to the chart, you can see indicator buffer information on the Data Window of MT4. ( you can get it by View -> Data Window menu )

If you want to test the behavior of your indicator, you can use Strategy Tester with the relevant indicator.

https://www.metatrader4.com/en/trading-platform/help/autotrading/tester_indicator

[trader_12345]

Hi,

 

Yes, the idea is a add the indicator to the chart, then run a back test.

 

Once finished I scroll the chart going back in history, and there will be a visual mark on the any candle sticks that have met the criteria.

 

Thanks

[Lorentzos Roussos]

It has to be coded in the indicator for marks to appear and backtest statistics .

If the indicator buffers are enough to extract the desired signal thought , an external tool can collect them , measure them , mark them and prepare statistical reports on them.

[trader_12345]

Thanks,

So as long as an arrow for example is coded into the indicator.

When I run the back test, I can scroll back through history on the chart, and the arrows will appear on the candles that have met the criteria?

Thanks