Jesse's backtest results differ from backtesting with another tool. What's the reason?

  • Is the strategy tested the same in both tools? Consider everything: indicators (same parameter, source type and formulas), stop-losses, take-profit and commission fees.
  • The formulas for metrics calculation might differ: Some backtest tools use stock market settings for the metrics (255 vs 365 trading days) leading to different metric values, to name one example.
  • Additionally, some backtest tools can have the so-called lookahead/repainting issue. This means they access future candle data leading to (too) good results. One example would be Renko candles.
  • The warm-up candles might be affecting the backtest: See here.
Last updated: 2 years ago