This tutorial shows you how to backtest multiple time frames at the same time.
You will learn how to set up multiple charts and run them all at the same speed during backtesting.
This is easy.
There are many software solutions that can do that, but if you’re not sure what to look for, it may not be clear how to do it.
This is what my laptop looks like.
As you can see, I open a weekly chart for 4 hours a day.
Running multiple charts simultaneously has many benefits. You can learn about this in this tutorial.
If you want to learn more about general backtesting, be sure to read my backtesting guide on how to backtest in the market.
Now, let’s get into that…
Why backtest multiple time frames at the same time?
There are many reasons why it is recommended to keep multiple time frames open at the same time.
Most traders feel that they benefit from looking at multiple watches during backtesting.
First, if you have multiple charts open at the same time, you don’t need to flip different time frames back and forth to see pivot points, trend lines, or support/resistance levels in the higher time frame.
This alone saves time.
Another reason for using multiple time frames is that you can trade in all of those time frames.
Let’s say you want to backtest the same trading strategy on a 4-hour, 1-hour chart every day.
Having the ability to get transactions on all these charts at once is much faster than testing each time frame individually.
Now, I personally find this to be a bit difficult to do in the past.
However, if rules are set up for each chart, backtesting can be paused whenever a transaction setup condition occurs.
Finally, not only can you test multiple time frames at the same time, but you can also run charts from multiple markets at the same time.
We’ll be taking part in multiple markets in another tutorial, but for now, let’s take a look at how to set up your chart.
How to set up a backtest on multiple time frame charts
Here’s how to do this in Nakedmarkets. Because that’s what I use.
However, the process is similar regardless of the software you use.
This method also works with Forex Testers and other software.
First, open Naked Market and start a new backtest.
Choose your backtest settings along with the market you want to test.
Once setup is complete, a blank chart will appear.
I’ll go now: file > Add a new chart > [your current market]
This will add another chart.
If you want to add more time frames, add the charts until you have all the required charts in place.
Next, resize each chart and everything fits nicely on the screen.
If you want to enlarge the chart, you can also stack the charts.
Next, select each chart and click on the Time Frame Selector in the toolbar to change it to the chart you want to display in that chart.
You can see the time frame for each chart in the upper left corner of the window.
Once you have set up the time frames for each chart, select the time frame you want to advance through all charts.
You can do this by selecting this Steps Toolbar time frame, next to play button.
For example, selecting a 5-minute time frame will move all charts forward in 5 minutes.
Next click play Buttons and charts move forward all at once based on the currently selected time frame Steps setting.
To trade, right-click on the chart and enter the transaction.
All charts are moving forward at the same speed, so it doesn’t matter which chart you get.
Your transactions will be displayed on all charts at the same time.
It is usually best to choose a lower time frame in Steps The settings are to show the largest details on all charts.
Doing this will also help you see what the candle looks like on a higher timeframe chart before closing.
In many cases, traders do not wait until the candle closes and trades.
This can lead to impulsive transactions.
Watching the candle unfold will help you understand the emotions you can pass as the candle develops.
It’s okay last thing…
You can add rules to each chart to pause the chart whenever setup occurs, or simply pause the chart.
To do this, simply drag the rules you want to use from the folder on the left to the chart you want to use.
Conclusion
Now you know how to run backtests simultaneously over multiple time frames.
Using this method will save you a lot of time and help you find profitable trading strategies faster.
This can be done on a variety of backtesting platforms, so check if the software is available.
If the software is unable to do that, consider using it Naked Market.
That’s what I use.
All that remains is to complete the first backtest.
keep it up!
