tester does or doesn't "look into future" when testing

[JMR6157]

When I run a backtest on my strategy, does the tester replay every bar of the data sample being tested and execute the strategy in "real time" or does it look at the whole data sample and execute the strategy. It seems like the latter may produce unrealistic results.

Thank you

Jason

[ACM]

Jason
The Back Tester replays the strategy bar by bar. Having said that you need to ensure that the strategy itself is not "forward looking".
Alex

[JMR6157]

My strategy enters and exits at the market on the nextbar after the signal. I think this means it is not forward looking, correct?

Jason

[ACM]

Jason
That is correct. If you want you can also enter/exit at the market on the current bar if the signal is triggered by the prior bar.
Alex