Testing strategies on historical data is an essential stage in any market research: it helps evaluate the effectiveness of a strategy in the past and identify its strengths and weaknesses.
Earlier in one of our updates, we added a new mode to the platform — testing on deep history. It allows you to test strategies on longer time intervals using all available history. And now we’re ready to announce that Deep Backtesting is finally out of beta! This means that we have improved its interface and implemented numerous highly-requested features.
Please note that Deep Backtesting is only available to Premium users and professional traders, and the maximum number of available bars for backtesting is 2 million.
Let’s see how testing on deep history is better than regular testing.
- It allows testing strategies on historical data which is not available in the regular testing mode. In this mode, you can use up to 100 times more bars, so you can dive deeper into history!
- With Deep Backtesting, you can generate a report for a specific date. It comes in handy when you want to test a strategy in a specific time period. Just use the time filter and see when your strategy is most effective.
- Deep backtesting has all the settings and benefits of the regular mode. For example, the Bar magnifier — it uses data from lower timeframes to simulate price movement within bars more accurately, and it also works when testing on deep history. To ensure that the information from the lower timeframes is enough, we’ve increased the Bar magnifier’s history depth proportionally.
To start deep backtesting, add a strategy to the chart and go to the Strategy Tester. On the right, you will see a toggle to activate the Deep Backtesting mode.
Then, you can select the necessary date and click Generate report.
Please note that calculations in the new mode are performed on bars without reference to the chart. Hence, the trades displayed on the chart result from regular backtesting. They will not correspond to the trades made within deep history testing.
We hope you find this update useful. Keep sharing your feedback and suggestions with us; this is how you help make the platform better. We make TradingView for you, so it’s important for us to know what you think.