BO Tester uses technical indicators to determine when to open a positions. Every indicator in the application has logical rules. These rules can be evaluated to true or false.
For example, if you use a Momentum indicator with a logical rule “Momentum rises” that literary means that the application rises un Up signal when the current Momentum value is higher than the previous one.
BO Tester trades only on satisfied rules. If you have more than one indicator, all available indicators must be satisfied for the current bar in order to produce an entry signal.
We set only rules for trading Up. The application sets the Down rules automatically.
The application will not open position in such case, because there are no rules to confirm the entries.
The strategy will trade Up when “AC rises” and will trade Down when “AC falls”. You can confirm that on the Indicator chart at the Report page.
When a strategy has more than one indicator, it will trade only if all indicators give permission for entry in the particular direction.
In that example we have two indicators. Following the strategy logic, the program will:
If one of the Up or Down rules is not satisfied, the strategy will not trade.
There are cases when the strategy indicators produce equal signals in both directions. Let's see the following example:
That strategy will not trade because its rules gives simultaneously permissions for both - Up and Down entries. If you set this example in the app and switch to the Down rules, you will see they will be equal to the Up rules. Since the conditions are ambiguous, the strategy acts in the safe way and prevents all entries.