I am trying to combine the market structure RR tool in the backtester with Bollinger Bands (BB) as a start condition, to see if the idea I have turns out to be profitable in the long term and if it can be automated.
The basic idea is that when there is a breakout in a higher timeframe BB, I want to enter a long position, with a stop loss below the nearest recent low and an RR of 2 (so the take profit will be dynamic based on where the low is), as you can see in the image.
Some days ago I was also backtesting with the RR and I had similar results and I think I know why.
The simple reason is that probably, you are in SPOT.
The complex reason is that if you are in SPOT sometimes is not possible to coordinate the amount of portfolio allocation to an entry with an indicator like BB%B and a % SL + an RR. Why? Because let’s say that you open a position and the bot calculates where will be your SL and TP with the RR, the problem here is that the bot is using the indicator to determine where are the SL and TP and what it is probably happening is that the SL is placed somewhere under 1% SL (0.05% for example) so when the price gets there, your position hasn’t decreased 1% but only 0.05% so there is a discrepancy between what your conditions are and what it is possible to do.
How to resolve that? By using leverage because with leverage you can get to 1% SL with 0.05% downtrend with x20 (for this concrete example). Also if the leverage multiplier is not high enough you still might have the same error, be cautious with leverage then.
Hope that my answer is clear enough let me know if this resolves your problem!
Be careful anyway with these specific backtests as they may give unreliable information cause they use more funds than necessary as it is said in the message. They will probably work differently on live account than in backtest
@maksym.shamko
It seems that the issue only occurs on Binance Spot. On all other exchanges I’ve connected to, it does produce results, even if they differ for the same pair over the same periods.
Because Binance is the only exchange that connects directly from client. All other exchanges are re-routed through our server (much slower). Binance is not serving you data, try with a VPN from a different country.
let me know if this resolves your problem!
