Backtest: position is not closed even though take profit pip is achieved

Created at 04 Apr 2022, 14:47
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RE

RedSeaBro

Joined 10.04.2021

Backtest: position is not closed even though take profit pip is achieved
04 Apr 2022, 14:47


Hi:

I am doing a backtest using tick data from server.

From the figure below you can see that a short position is opened at 1.88894 at 19:43.

One minute later, at 19:44, the low price is 1.88816. The difference is 7.8 pips, I expected the position to be closed at 19:44 because the take profit pips of 7 is hit.

But the position is  not closed. 

This is wield to me. Could anyone kindly provide any insight why the position is not closed even though the take profit pip is hit?

 


@RedSeaBro
Replies

amusleh
05 Apr 2022, 09:49

Hi,

It happens because of spread between bid and ask price levels, the bars are created based on bid price.


@amusleh

RedSeaBro
05 Apr 2022, 15:22

RE:

amusleh said:

Hi,

It happens because of spread between bid and ask price levels, the bars are created based on bid price.

Thanks a lot amusleh. It makes sense to me.


@RedSeaBro