The Truth About Backtesting Strategies on Price-Based Charts

Hi, good morning everyone. Welcome to this Trade Station webinar. Today we're going to talk about pricebased charting and the ability to test a trading strategy on a pricebased chart. We're going to talk about the some of the characteristics of running a strategy on those types of charts, some of the pros and cons that you're going to see, and the reality of testing a strategy there. So, let's go ahead and get started. The title of today's class is the truth about back testing strategies on price-based charting or charts is part of our strategy elements series of our master class. For those that are new to the series, my name is Jesus Nava. I'm the director of client training and education right here at Trade Station Securities. For me, it's always been a pleasure to talk about Trade Station. I've been doing it for over 20 years and it's always been a pleasure. So hopefully this is a class that leaves you with interesting information. So please uh if you have any questions or any comments to make, you have access to the chat interface where you can communicate with me. Before we get started, the usual disclosures, keep in mind that every symbol and idea that we talk about here is for educational purposes only. Trade decision doesn't make any recommendations about trading. Also, active trading is not suitable for everyone and past historical performance, which we're going to take a look at today, is no guarantee of future results. If anybody needs additional information on these disclosures, they are all posted on tradstation. com/important-information. You'll find all the links in there. For now, I am going to switch over to my trade station platform and try to set my chart so that we can do some testing over here. Let me just open up my participants. I didn't want to. Let me just set up my screen correctly so that I don't miss any of your questions if you send any. All right. So price-based charting for the most part as an active trader and market analyst we rely on charts to look at market activity where the price has been where it's headed just to do all sorts of analysis on what the price activity is showing us. For the most part a lot of traders use candlestick charting. So what on the screen is what a lot of people use. They just use the default charting style and stick to it and do all the analysis in there. So they rely on the technical indicators to provide a picture of what the market price is doing. However, the market price itself and the way that it's moving can also be used as a market indicator in itself and that's what a pricebased chart does. So rather than looking at a fiveinut chart like we are right now where every candlestick represents the same amount of trading not activity but the same length of time. Every candlestick that you see here represents five minutes in time. Now, as a trader, you know that for a lot of these securities that you trade, the beginning of the market and the end of the market are probably the highest activity times in when it comes to volume. So, they're highly traded at the beginning of the day and at the end of the day. For stock trading, a lot of times that creates sort of a bold pattern where you see volume spiking up at the beginning of the day and at the end of the day. So when you look at time activity and you split up the trading day into equal five minute segments, you know for sure that a fiveminut segment at the beginning of the day has far more volume than a fiveminut segment in the middle of the day. So dividing the day up into equal segments may not be very representative of the way that the market moves because there's far more activity at the beginning and at the end. If we use a chart that takes that into account, takes into account activity and price movement, then we may be on to something. Maybe we look at the market from a different perspective. And that's what pricebased charting do because they only base movement of the chart on price movement. I know that volume is a big thing but price movement is also another thing. So yes, when you look at a chart here in Trade Station, you have the ability to modify the style in which the candles are built. As I said before, the default is timebased. We have a couple of charts that are based on trading activity like volume or and volume can be expressed in two different ways. For example, if you're looking at a futures, you can look at the number of contracts traded or times the futures is traded. So you can have one

trade with 10 contracts and that's counted as one trade or you look at the number of contracts and you say 10 contracts were traded and you can build the chart based on those contracts traded. But this other type of chart which is price-based ignores completely time and ignores completely trading activity and what it bases its movements on is pure price. Let's go and take a look. I'm going to go here to my time frame. The pricebased charting are not going to be here in this dropdown. So, you'd have to go here to customize or if you go here to style. That's where some of the price based charting are going to be. Let me go here to time frame. And if you click on customize, it'll take you to this customize symbol. If you look over here, you see the one that is highlighted right now. Now it's the minute and you see all the timebased ones grouped together. We have the second which is the more the highest I'm going to call it the highest resolution time frame. It goes down to the second and you can create a 1 second chart if you wanted to and it is just second minute daily weekly and monthly. Those are based on time. Then you have the top two tick and volume which are the activity based ones. the ones that are based on the number of trades and that's what we call a tick. A tick is a trade. Anytime something is traded regardless of the number of shares or the number of contracts that is counted as one. That's tick charts. Volume charts take into account the number of contracts or shares traded. And when you build those two types of charts, you are pretty much selling trade station, I want you to look at the trading activity and every time that there's a certain number of trades happening, I want you to build a bar. So now the day is broken up into pieces where volume is the driving factor. It's not time. So we're not looking at equal segments of time. Now, we're volume, trades, contracts, and shares. What that creates is a chart that is sensitive during high market volume. Whenever volume spikes up, you see the chart moving faster and creating more candles because there's more activity. Pretty interesting. If you haven't looked at time, activity based charting, maybe it's an opportunity for you to explore and see how your indicators and how your strategies behave in that setting. All the intervals you see right below this horizontal line are the ones we consider price-based. Now, those are the ones that don't take into account time. They volume. They're only and purely looking at where the price is headed. price movement charting and we're going to take a look at one of them and probably create a strategy around it and you can see some of the intricacies about back testing strategies on a strate on a price-based charting like that. Again, all the ones that are below this horizontal line are price-based. We are going to take a look at Reno. Reno has three ways in which it's calculated. Classic, mean, and custom. We're going to take a look at the classic and brick size. A lot of times we spend we think about what the brick size should be. And this is very relative to the security that you're trying to analyze. And you're going to have to decide what the brick size is. By default, we have a 0. 5. Now, if you look at the security that I have here on the chart, I have at ES. This is a continuous futures contract based on the S& P 500, by the way. And every time that this contract moves 0. 5 in its value, we're talking about $25. Every time it moves one whole point is $50. If you're a futures trader, you know what the big point value is, and it's $50. So, every time that it moves half a point, then we're going to get what's called a brick for a rainco chart. In this particular case, you know, the futures contract is trading at 7,68. You can see how quickly the security moves half a point. So maybe half a point would not be appropriate if you're trying to filter noise from the chart. If you set it to 0. 5, that's exactly all the noise that happens on the S& P 500 futures contract. So that's when that's what I mean when you have to think about the security you're trading and what would be an appropriate box size or brick size for that. A lot of times whenever I'm looking at a security, I tend to look at it from the average true

range perspective because it does allow you to see how much the security moves in a particular time frame because the time frame is also a very deciding or a very important factor in trading any strategy. Whenever you apply a strategy to a fiveinut time frame, for example, this one, you're going to see how the strategy is going to be very active because every five minutes is going to calculate and decide whether it needs to send orders or not. When you run a higher time frame, let's say daily for example, the strategy calculates every single day and every single day orders are generated. But we don't have that intraday activity which is very specific to intraday charting. So the first thing that we need to decide is whether we want to trade the strategy from an intraday perspective or do we want to maybe do more of a swing trading strategy where we have daily a daily time frame. It's very important for you to think about that because that will determine the frequency at which the strategy generates trades. Of course, the rules and conditions have to do a lot with how frequent the strategy trades, but the time frame also changes the calculation of the strategy from an intraday perspective to a little bit higher. Let me show you uh an example with how I come up with values that are appropriate to insecurity. Let me go here to studies and add studies and look for the average true range. I added This calculates the movement of the range from high to low for the past 14 bars. And you can see over here on the right hand side that I get a 5. 16. So in average, what the ATR is telling me is that the S& P 500 moves about five points every 5 minutes. Does that make sense? So I connect the ATR to the time frame and I ar arrive at that conclusion that yes every 5 minutes we have an average movement of five points at least for the past 14 bars. If you change the historical look back of course you're going to get a different result but for the past 14 bars the S& P has moved about $5. You can see that it's lower depending on the time of the day. Sometimes it goes down to two, sometimes it goes So if I wanted to maybe have a value that is representative for a longer period of time, I may have to go further back than just 14 bars. Think about this. The S& P 500 futures is a security that trades overnight. If I'm looking at the price activity that's happening over here, this happened overnight and all of a sudden over here which is the 9:15 closer to the open of the stock market. This is when the futures picks up in activity and that's why we have this spike in the ATR because there's more price movement because the stock market opens and of course it affects the S& P 500 index. So if we want a value that is a little bit more representative of course we have to increase the number of bars back. So if I do that let me double click here go to the inputs and the ATR length. Let's say for example that we I'm not really sure how many So let's do some math here. How many bars are in a 24hour period? So, we have 24 hours time 60 minutes, that's 1440 minutes, divided by 5, we have 288 bars, give or take. I know that there's an hour where the S& P E mini futures kind of breaks. There's no trading activity, but we're just going to ignore that. So, we have,440 minutes in a 24h hour period. And if we divide that by five, we get 288 bars. Now, we can use an exact number or kind of an estimate. I'm going to set my length here to 200 so that it includes a little bit of the overnight or at least a 24-hour period. In fact, I can go a little higher, closer to the number that I got on the calculator. 288. I'm going to click okay. Let's see. Let's take a look at All right. And I'm just going to click okay here. When I do that, I want you guys to look at the ATR. And you can see that it smoothes the average a little bit more. and we get about a 3. 5 movement. Of course, you can use that as a gauge as to how much how many points this security is moving. Now, if I hadn't done that, let me go ahead and go back here to my average to range. I'm going to leave it at 14, which is the default, but I'm going to change the time frame here and set it to daily. If I change the time frame to daily, the ATR of course is going to change. And you can see that instead of three or five I see 73 which means that in the past 14 days the

S& P Ein futures has moved 73 points in average every single day. So when we look at I'm just saying all this because when we look at time frame and we want to change it to a Reno chart is based on that brick size the price movement. What is significant when it comes to price movement? If you're looking at a daily chart, maybe of course a 0. 5 is way too low. It's even low on an intraday chart. But on a daily chart, you have to take into account what is the average movement. Now, I'm going to be using on a Reno chart, tick interval. Notice that this is hardcoded. So, Ranquid charts only use tick interval, which is pretty cool for back testing because we have every single tick movement. But in real time, the story is a little bit different. We're going to take a look at that as well. I'm going to set my chart to load 20 days of historical data on a one tick interval. And I'm going to set my brick size to three. Let's do an average of I'm going to do five. every bo every box is going to be the equivalent of five points. So what I'm technically telling my chart here is to build to go back to 20 days of history very beginning of that time period and start calculating five points up and five points down. And every time that the S& P 500 moves that amount it's going to draw a box or a brick. Let's go ahead and see what happens and how my chart looks. I'm going to click okay. All right. This will take uh this will take some time because of course my trade station is going out to the data network and loading tick by tick that I did that earlier this morning so it would load faster and you can see that it just did. I'm going to remove the ATR from the bottom and take a look at the time scale here. All right, you can see where June 2nd begins right here where my vertical line is. This is June 31st. So you can see we get a big chunk of boxes every trading session from midnight to midnight. Of course, doesn't really matter because this is just a continuation of prices. But what it did, it went all the way to the back and from the very beginning of the price activity, it kind of calculated every time the S& P 500 went up or down by five points and it drew a box. Every time you see a green box, it's because it went up five points. And if you see a sequence or a batch of green boxes, it's because it's gone five points for each one of those boxes that you see. And then you see the red ones and you see the green ones. Now, let's go ahead and uh turn this into a strategy. When I first looked at a ranquer chart, I said, "This is a very clean view of price movement. We see a very clean batch of green boxes if the prices are going up. we see a clean batch of red boxes if the price is going down. Many times the market is not very clear as to where it's headed. We see a lot of back and forth from those green to red boxes and that's okay. But let's go ahead and build a strategy out of this. Many times when you see those big switch swatches of boxes, those may be good trading opportunity. Let me squeeze the chart so you can see them. Maybe those are good trading opportunities. So I couldn't find the strategy that I used to test before. But let's go ahead and build the strategy together so that you know what the process is and what I did is I went to the development environment. So I'm going to go to easy language and just close some of the documents here so that we can all right and I'm going to go here and create a new strategy. And I'm going to call this at MC Reno test so that we can build it together. In this strategy, I'm just going to do a very clean comparison. If the close is greater than the close one bar ago, okay, close is greater than one bar ago and close one bar ago is less than close two bars ago and is less than close three bars ago. then buy next bar at market. What does this do? Okay, I'm looking at the closing prices. Of course, you can tell that I'm looking at the closing prices. If I go back to my chart, you're going to see that on the Reno chart. When the prices are going up, the top of those boxes is the closing price. So, the bar opens at the bottom, the price goes up, and it closes at the top. So, every brick size, of course, the close is at the top of that box. on a red box, the close is at the bottom because it closed lower than it's open. Does that make sense? So, when I'm looking at my code and I'm looking at the close is greater than one bar ago. So, when I'm looking at that, I'm looking at this scenario where the close of the bar, this green bar, is greater

than the close of this red bar. But at the same time, I want to make sure that I'm on a downtrend. So I want the close of this one bar ago to be lower than the bar before and before. So lower close two times and then we get it in up close. That is exactly the scenario that I'm looking for. And I'm going to do the same scenario on the opposite side. But before I do, let's go ahead and confirm that this is doing what I intended to do. Let me go ahead and verify this. Verification is successful. Let me go back to my trade station and put it on my chart studies. Add strategy. And yes, I can have the strategy without the other side. And what it will do, it will generate a trade and then sit until a new trade is generated. So I'm going to scroll back here. Okay, everybody sees what happened? This is the same scenario that we were just pointing out. As soon as we get a up box or a green box after a sequence of three red ones, it buys. Now, this bot right here on this swatch of bars that we didn't get a clear direction, but that's okay. We're going to do the other side and we're going to create the strategy as a strategy that flips you back and forth between long and short. Let's see what happens. Then I'm going to come back to the development environment. I'm going to try to copy this whole thing and I'm going to paste it here because now I'm going to do the other side. If the close is greater than or less than, I'm sorry. If the close is less than the close one bar ago and the close I [clears throat] just have to invert these comparisons to greater than just to do the other side. And then I'm going to do sell short. Next bar market verify. And that's it. Let me go back to my chart. And now I have a strategy that flips you back and forth between long and short. Now here we had a big losing trade. we were short. It actually stayed short throughout this period. And let me go ahead and look at the strategy performance report data. Strategy performance report. Okay. And you can see that the strategy doesn't perform bad. We have a profit factor of 2. 44, meaning that for every dollar that it loses, it makes $244. The total net profit is about $43,000. If we were to trade this from May 4th to June 2nd, of course, this is just a historical back test and I want to emphasize that this does not guarantee future results. This is not an indication for you to turn on the strategy because that's the whole reason why we're doing this class. This strategy does not behave the same way going forward in real time because there's a lot of factors affecting the way that the price moves that are not reflected in the chart. Let's go ahead and refine the strategy a little bit further. Let me go back here to my code and I'm going to say I'm going to set a profit a stop-loss and a profit target. Let me see. Okay, there we go. Set stop position. Set stop loss. I'm going to set my stop loss at $100 and set. Let's see what that does. $100. Verify. And then go back here to my chart. See the stop loss kicks in very shortly after a trade. I want you to take a look at some of the things that the strategy is doing. So this is a stop-loss short trade. Let's see. Let me go to strategy performance report. Now that made the strategy better because we have a very short stop and whenever it takes a short in the opposite direction then it just uh it's not taking these trades right here. Maybe because I'm being a little bit more restrictive. Let me go ahead and just compare one side. The thing is that when I look at the code here, I'm looking at the current bar, one bar ago, two bars ago, and three bars ago. If I were to remove this section, which is the third bar comparison, and let's verify this, that I think will guarantee, not guarantee, but at least it'll allow me to enter quicker into the market. Now, I just built a strategy that realistically is not something that you'll be able to trade, and I'll explain why. Now, if I go here to the strategy performance report, this made it there's a lot of losing trades, which is fine. If I go here to my performance graphs, you can see the equity curve line. It has that beautiful 45 degree angle. If we were to increase the amount of data, it just keeps on going on and on until infinity. Now, let's talk about the reality of this. Is this strategy tradable? Are you able to apply a strategy to a Renco chart and get the same results of the historical back test? Well, let's talk about this a little bit. Let me go ahead and uh get rid of my performance report. I want to move over here to the very front of the chart. And this is what's

happening. Everybody sees where the current price is, 760. that line that's moving up and down, that is the current price of the S& P futures. Now, you can see that there's no fixed break yet because what the strategy or what the chart is trying to look for is for this line to go beyond the five points that we specified in order to draw another green brick or go below from that opening price five points lower so that it draws a red box. Another thing that's happening here and I could take this a little bit further and try to pinpoint those tops and bottoms. Let me do this. This is something you would only find in a historical back testing. And let me go here back to the easy language of this. And instead of saying next bar at market, I can say this bar on close, which waits until the close of the bar to give you a marker. Sell a short this bar on close. Let's verify that. Now, if I go back here to my chart, you can see that I'm hitting those tops and bottoms, not over here because this is just a reversal strategy, but many times I'm able to hit that top. Let's see if we find another one here. You see that long over here got filled, the short gets filled down here. Let me see how that improves my strategy performance report. Again, we see a little variation. It's not as clean as it was before I made that change. So, maybe I'll just go back to the way that it was. Okay, let's go back here to my code. But you have that syntax in order to place a marker on the close of the bar, which in real time it makes no sense because you cannot fill a trade on a closed bar. Once the candlestick is closed, there's no more trading activity happening there. It is closed and it goes on to the next one. expecting the strategy to fill you on the close is unrealistic. It's just here this bar and close syntax is just there for you to do historical back testing on the close of that bar. There are ways in which you can kind of simulate this behavior by making sure that trade goes off or triggers a few seconds or a few minutes before the close of the bar so that you have that closeness to the close. In reality, once the bar closes, no more trading. Let me go ahead and do the changes. Ctrl +- Z. And just leave it at next bar at market. Verify. And there we go. Let me go back here to my performance report. It updates automatically, I think. Yep. Did it. Let me go back here to my next bar at market. Next bar market. Let's verify. This is verified. Let me go back to my code. Now you can see that we have that cleaner 45deree angle. Now let's go back here to reality and what may happen. You can see that in real time every trading activity is happening within a particular break. That stop-loss is something that is a historical calculation but the stoploss you're not really sure if it was hit for sure. Let me go into that a little bit further. In fact, let me see if I can zoom in a little bit more. I want you to concentrate on the activity that is happening here. In here, we were we generated a short trade on this candle. So, this is the criteria of the strategy that we just generated. We had a brick red brick that was finalized after two consecutive up bricks. So, we it went up and then it went down on this particular candle. It said, "Hold on. I think I may have a short signal because the price is going down. So it generates that short signal over here on next bar. So it generates that fail right here at the top and then it stops you right there in the middle because we set a stop of $100. Everybody remembers that, right? So the stop loss is generated right there in the middle of the chart. Now over here we got another long trade because again we get the long break after a short break and then the strategy generates that long. But in real time you're not really sure where the price goes from the fill of an entry. For example, once you get filled on this short, you're not really sure if the price went up or down based on the strategy over here. Yes, we got filled and the price went up and it hit our stop, but in real time, the price could have come down instead of going up and instead of hitting our stop, the result would have been different. So what I'm trying to say is that this chart is not finalized until the price moves. But the trade has

is independent from that final outcome of a brick being formed. The strategy will react to real-time activity. And what I want to do right now is probably turn on strategy automation so that you can see where the trades are being generated. Let's go ahead and reduce the Reno brick to something smaller so that we can see the strategy in action. I'm going to go here to data edit symbol reduce the brick size to 8. 5. Still leave the 20 days back and see if I'm able to automate the strategy and see where the fills are occurring and maybe we'll have a better understanding on how the strategy reacts in real time because historically it's a beautiful strategy. Now, let's go ahead and go to my scale data edit symbol scaling. Let's do automatic. There we go. So, we have an automatic scale. I'm going to turn on the strategy so that it generates strategy orders and automates the execution. I'm going to say confirmations off so that we can see where they're being run. Okay. So, my strategy is on. It's going to take a few trades for it to — order rejected. I got rejected because I was in a short trade. So, right now I should be fine. I should be in sync at least. Maybe this — rejected. — Let me just see what's happening here with my orders being rejected. Let me go here to my apps and my trade manager. Oh, okay. I know what I mean. Rejected. I'm trying to trade something that is not tradable. ATES is the continuous contracts and it's not tradable. So let's go ahead and switch this to something different at ESM 26 which is the you want to disable automation. No. So let's give it let's give this a couple minutes for it to load. I hadn't downloaded data for ESM26 but in order for you to run a strategy you do have to run it on a symbol that is tradable. You cannot trade the continuous contract. And even though this symbol is continuous because it has the at symbol, it has a specific month and year expiration so that it links to the front month. So I'm able to get a little bit of that historical data, but at the same time a symbol that I can trade. And that's one of the benefits of having this symbol. So let's see. Let's give this chart a little bit time for it to load. I know that when I did it the first time, it took a while. We're talking about hundreds and hundreds of data points. if you're loading 20, not only hundreds, thousands of data points if you're loading trading activity to the tick level on a security like the S& P 500. So, let's give it some time. One of the reasons why we provide the chart a little bit more historical data is for the strategy to have enough data to calculate. Many times I've loaded one or two days of historical data on a tick level and then the strategy doesn't have enough historical bars to calculate and it doesn't work. So for running a strategy, you have to make sure that there's enough historical data for the strategy to do the initial calculations and then start moving forward. And if it doesn't find that, the strategy will just wait until it has enough data to calculate before it even starts functioning. So that's why I always start with a very with a sizable chunk of data so the strategy doesn't come back and say hey I don't have enough to calculate. I do I'm hardwired to my internet so it shouldn't take much longer. If it was over Wi-Fi, of course, it will be a little bit tougher to get the data. But one of the nice things about Trade Station is that this data that is being downloaded is creating a cache file on your computer so that next time that you load it up, it doesn't take as long now. You doesn't you don't have to download it from the internet. It actually — filled — reads from your computer hard drive. Okay, take a look at what's going on here. my long trade. I want you to take a look at that. My long trade was filled up here. This is my real time execution because it actually trades on the next tick. But notice how the price hasn't finalized — fil. — Now it switches to a short trade. And I'm just going to click okay here because I want you to keep an eye on — where the fills are occurring. The fills occur based on what the strategy says. Fill next bar at market. But next bar at market, — there's a big question mark as to okay, what's going to happen on next market? Is the price going to go up or down? — You can see the fills are happening — outside of a brick, which doesn't happen here. If you look at the historical data, every single fill is attached to the brick in my in the little piece of historical sorry

historical in the little piece of sorry real time testing that I'm doing. One, two, three, even four. I'm sorry. Let's count again. One, two, three, four. Four — order filled — out of six trades are happening outside of the break. that is not keeping itself tied to what happened historically. And it has a very simple explanation. Once you get that fill next bar, that next bar hasn't happened yet. And you have no way of knowing if it's going to be an up brick or a down break. The price is moving in real time, but your trade already happened historically. It's looking at price movement. It's looking at bricks that already happened. And that's why it places those entries and exits very nicely within the bricks. That's a simple explanation of why you have to take the real time calculations of this strategy or I'm sorry take the historical performance of this strategy with a grain of salt because in real time you have a totally different behavior because you are trading on bricks that haven't happened. Now you can see that the last two trades did I did happen within the brick. So that's fine. But this whole scenario where you have fills outside of the brick, you don't see it in real time. And that's what messes up the real time performance of this strategy. It doesn't stay true to what the strategy is saying. Of course, can you The question is, can you modify the strategy so that it double checks and stays true to what's happening in the market? You can use that. This long trade is going to be a — order filled. — Nice trade. Look at where it got filled because it filled next bar market. That fill right there would not have happened in — order filled — in the historical back test because it's not attached to a brick. But based on price activity, that's where you got filled. Now, I want to take a look at the performance of the few trades that have happened in these two minutes that we've looked at the strategy and see what the results are. I don't think I've traded anything in strategy automation on this computer. So, we should be able to get at least a small report on our performance. Again, look at this other fill. We got a fill here outside of that brick because the break is not defined yet. The price is moving up and down. You can see how it's shifting from a green to a red, red. So, it's not finalized. the execution happened already and it stays where it happened independent of where the chart is doing or going. If I go back here to me, let me turn off my chart. Now, right click, disable strategy automation. All right, I'm going to close the position filled. — Now, let me go here to apps and I'm going to go to the trade manager analysis. on my trade manager analysis. Let me go ahead and disable my margin accounts and I'm just going to leave my futures checked. So I have one three accounts and I'm going to go this is today. Today is the 2nd of June and yeah all symbols I'm just going to generate. Let's see if this generates anything. No trades available for the specified date range. Let me go back here. Maybe it'll do it tomorrow. We do all accounts. I thought I'd be able to generate something. Let's go here to the third. The last day cannot be greater than today's date, of course. So, today's date is the second. I hadn't used the trade manager analysis in a while. And I thought that it would be able to pull those few trades that we did in real time. Okay. So, if you look at let's go look at the trade manager instead. So, apps trade manager. All right. We get all the transactions for today. So this is a it bought at 761325. It sold at 761225. That's a losing trade. It bought at 7613. It sold at 7612. Losing trade. Bought here. Sold here. That's a break even trade. Although we're not counting commissions. Bought here. This is a winning trade right here. It's about 2 1. 5 win right here. So about $75. Then we have a buy here and a buy here. This is a break even, so it's a losing trade because we're not counting commissions. And over here, we bought and sold here. We made about a quarter of a point, which is $12. But, uh, it's fine. But you can see that the reality of things. The strategy is not sticking to what the Reno chart was designed for. So, keep that in mind when you're testing strategies. I'm not saying that strategies don't work on Reno. You just have to be aware of the behavior. the historical back test. Again, it's a little bit deceiving because it's drawing conclusions on breaks that are historical that already

happened. And in reality, the price movement has a little bit of flexibility as to the ups and downs. That's on the real time bar where the strategy is actually running. So when you look at the strategy performance report and you see this beautiful 45 degree angle, this is only happening in the historical back test. It's not something that happens in the real time setting. So keep that in mind. That's my class for today. I wanted to talk a little bit about Reno, pricebased charting and how strategies react to historical versus what happens in real time. I don't see any questions in the chat. So, I'm going to assume that everything was clear. If you have any questions, I'm going to share my email address with the class here. So, that if you have any comments or if you do your own personal analysis on pricebased charting, you can always share. We can discuss. I'll be glad to comment on on your strategies as well. Thank you so much for your time. Have a wonderful day and hope to see you in one of our future classes. Bye-bye.