problem when desired exit price is not on the chart price bar?

[jcm21]

I am trying to roughly simulate trading put and call stock options. In so doing I am trying to impose a maximum allowable loss on the stock to the purchase price of the option [eg] when the stock price reaches a 2 point loss I tell the backtester to not exit the position at that price but at a price of 1 point loss. However, if the fictitious exit price is above the high of the bar on which the 2 point loss is encountered the back tester does not accept it [I think that is what is happening].

Is there a way to accomplish my objective?

[eSignal_JasonK]

Hello jcm21,

It's not clear what the problem is based on your post. You're saying that when the price encounters a 2 point loss, this implies that the range of the bar covers this price. When the exit price is outside the range of the bar, it would appear to me that your condition would evaluate to false and not exit as it requires the 2 point exit price to be encountered. Aside from that, you may not be creating realistic results if you record an exit trade at a 1 point loss only when the price encounters a 2 point loss. There may be instances where the price reaches a 1 point loss and reverses before the 2 point mark is encountered. If your strategy is based on a 1 point loss you may want to simply look for the 1 point loss and record the exit trade at 1 point loss accordingly to create more realistic back test results.

[jcm21]

Thanks. I will reply within a week or so.

Hi Jason,

Thanks for the reply. I will be out of town for several days but will reply as soon as I can when I return.

Many thanks,
Joe Miller