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Profit Target/Stop question

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    Profit Target/Stop question

    This may be a simple question and i'm sure it's explained in the documentation somewhere. However, my question is lets say for instance you set profit target at 10 ticks, stop at 10 ticks. Their appears to be a bias towards the stop. Which can be a good thing as it gives you more of a "worse case" bias. I am wondering why the bias is there? For example lets say I have a strategy that says go long when close[0] > close[1]... and I run it with equal stop and profit target.. and i'm not taking into account any slippage or commission..., and it shows only 44% of trades as profitable.... well then shoulnd't it be true that if you went short there instead of long, you would have roughly a 56% profitable trades.

    Like I said i'm sure this is very simple and for good reason probalbly to give more of a worse case scenario result.. i'm just wondering if somoene coudl shed some light on what its exactly doing here?

    thanks

    #2
    Actually I may have an answer to this myself. I am assuming since I am using minute data. That when it gets the bar if both the stop and profit target values have been hit in that bar it takes the stop instead? is this accurate?

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      #3
      In backtesting, the most conservative approach is always taken. The stop will always be filled over the target.
      Josh P.NinjaTrader Customer Service

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