When Trade by Trade Statistics Do Not Match Trading Signals on the Chart

Occasionally you may find that the Trade by Trade statistics do not match the actual trades on the chart. This is not a bug. It is a direct result of the mechanism for generating the Trade by Trade statistics being different than the mechanism which places trades on the chart, and choices you have previously made.

The trades are placed on the chart by simply applying the rules you created in the Trading Strategy to each bar as it is presented to the chart. However, the more time consuming process of computing all the statistics found in the detailed analysis does not occur (nor would you want it to occur due to the extra processing time involved) every time a change is made to the chart. Instead, these statistics are only calculated every time a Trading Strategy is rebacktested.

So, whenever the inputs to the Trading Strategy change, but the Trading Strategy is not rebacktested, you will see differences between the detailed analysis statistics (including the Trade by Trade) and the actual trades annotated on the chart. The 3 most commons reasons for this occurring are as follows:

1) You are using predictions as inputs to your Trading Strategy and you have retrained or modified the predictions since you last rebacktested the Trading Strategy. After you retrain or modify the predictions which feed into a Trading Strategy, you will be prompted to rebacktest the Trading Strategy. However, if you choose NO to rebacktest the Trading Strategy, then the statistics in the Trading Strategy will not be updated until the next time you rebacktest the Trading Strategy and therefore your statistics will not match the trades on the chart.

2) You added new chart pages and when prompted to backtest the new chart pages you pressed NO. If you choose NO to rebacktest the new chart pages, then the statistics in the Trading Strategy will not be updated until the next time you rebacktest the Trading Strategy and therefore your statistics will not match the trades on the chart.

3) The historical data you were using changed. Most often this is due to the fact that you are mapping different or additional data files for a given ticker symbol. When this happens, depending upon your data sensitivity setting (Tools->Options), you are asked to rebacktest/retrain existing trading strategies and predictions. If you press NO to rebacktest and retrain, then the statistics in the Trading Strategy are not updated until the next time you rebacktest the Trading Strategy and therefore your statistics will not match the trades on the chart.

Bottom line: if you see this mismatch, modifying the trading strategy and rebacktesting will make everything match again.

Was this article helpful?

Related Articles