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Tick data for backtesting

Backtesting uses historical data to determine the potential performance of a trading strategy.

Tick data used for backtesting is not the actual historical data. It is generated based on a one-minute candlestick's open, low, high, and close price.

For the one-minute candlesticks data, the open price is set at 0 seconds. The low price is taken at the 15th second, the high price at the 30th second, and the close price at the 45th second of each minute. Note that the open price of the following one-minute candlestick is also with the 60th second of the current minute candlestick.

To allow a strategy to be executed at these four distinct points in each minute during the simulated trading hours, select the "Run once for every tick" option in the Backtest Settings.

Any images provided are not current and any securities shown are for illustrative purposes only and are not recommendations.
For live trading, the option "Run once for every tick" lets the strategy run based on actual tick data, reflecting real price movements.
Losses can happen more quickly with quant and algorithmic trading compared to other forms of trading. Trading in financial markets carries inherent risks, making effective risk management a crucial aspect of quantitative trading systems. These risks encompass various factors that can disrupt the performance of such systems, including market volatility leading to losses.
Moreover, quants face additional risks such as capital allocation, technology, and broker-related uncertainties. It's important to note that automated investment strategies do not guarantee profits or protect against losses.
The responsiveness of the trading system or app may vary due to market conditions, system performance, and other factors. Account access, real-time data, and trade execution may be affected by factors such as market volatility.
This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Our platform makes no representation or warranty as to its adequacy, completeness, accuracy or timeliness for any particular purpose of the above content.