Optest Backtesting
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Hi @Definedge team, Hope you're doing well.
I have a question regarding Optest backtesting. When we choose 'P & F Technical Trading', there are conditions related DMA and TMA. In this technical indicator, what period of moving averages are used? And I suppose these are EMAs only(comment on this as well). And when it says above DMA or TMA, does it also mean that these moving averages are aligned as well.(I mean if there're 20,30,40 EMAs, does above TMA mean price>EMA(20)>EMA(30)>EMA(40))?Thanks in advance!
Warm regards! -
Dear Customer,
Thank you for connecting with Definedge Securities.
We are glad to address your queries about our services.For P&F Technical Trading method in Optest, Simple Moving Averages are used with values mentioned in the "Entry And Exit Condition"
section tooltip. Attached herewith is the screenshot of the same for your reference.The alignment of moving averages is not taken into account. However, when a positive crossover occurs, the moving averages naturally tend to move upward.
Please note: Moving Averages work differently in Candle Charts and P&F Charts. For example, in a 5‑minute Candle Chart, the 10 EMA considers the last 10 candles, while in a P&F Chart with 1% boxes, the 10 EMA uses the last 10 columns.
If you have any further queries reach us at 020-61923200, we will be happy to assist.