Topic: Inside Bar Trading

I want to backtest inside bar trading. I just downloaded a copy of this great program but do not know where to start. My parameters are simple

Im using the Daily Chart with a 20 period EMA closed.

If price is below the EMA it starts looking for inside bars and if the low of the inside bar is broken it goes short with the stop right above the inside bar

If price is above the EMA it starts looking for inside bars and when the high is broken it goes long with the stop right below the inside bar.

Take profit is when price touches the EMA.

How would i go about starting to test this ?

Thanks

Re: Inside Bar Trading

Hi,

set up FSB as follows:

[Opening Point of the Position]
Previous High Low
     Enter long at the previous high
     Base price  -  High and Low
     Vertical shift  -  0

[Opening Logic Condition]
Moving Average
     The position opens above the Moving Average
     Smoothing method  -  Exponential
     Base price  -  Close
     Period  -  20
     Shift  -  0
     Use previous bar value  -  Yes

[Opening Logic Condition]
Inside Bar
     There is an Inside Bar formation
     Use previous bar value  -  Yes

[Closing Point of the Position]
Moving Average
     Exit the market at the Moving Average
     Smoothing method  -  Exponential
     Base price  -  Close
     Period  -  20
     Shift  -  0
     Use previous bar value  -  Yes

and off you go  big_smile

good luck in testing!

Re: Inside Bar Trading

update on

the stop right above the inside bar

set the closing like this (turn on logical groups):
[Closing Point of the Position]
Bar Closing
     Exit the market at the end of the bar
     Base price  -  Close

[Closing Logic Condition]
Previous High Low
     [ a ]   The bar closes below the previous low
     Base price  -  High and Low
     Vertical shift  -  0

[Closing Logic Condition]
Moving Average
     [ b ]   The bar closes below the Moving Average
     Smoothing method  -  Exponential
     Base price  -  Close
     Period  -  20
     Shift  -  0
     Use previous bar value  -  No

Be aware that the stop will move after each completed bar (to its low), it will not stay put below the given inside bar, which triggered the trade. And the MA part is also different - position won't close on touch, but when price has closed below the MA.

I suggest you scrap two closing logics setup and test them one by one, it will follow your parameters better. To do it just change
[Closing Point of the Position]
Moving Average
     Exit the market at the Moving Average

to [Closing Point of the Position]
Previous High Low
     Exit long at the previous low
     Base price  -  High and Low
     Vertical shift  -  0

Re: Inside Bar Trading

Thanks so much. Im going to try it now