How To Backtest TDI Indicator?

I’ve been trading BigE’s “Trading Made Simple” style for a few weeks. Backtesting it however, seems to be challenging. The problem is the TDI indicator. When I’m looking at a live chart, the TDI for the current bar is generated at the beginning of that bar, and does not appear to repaint at any point (it says the same forever, regardless of what that bar does). Only on the next bar would the value change.

However, when looking through a chart’s history, the TDI below each bar appears to represent the entire bar’s price action. For example, say there was a huge move up on a bar. When looking at the TDI live, only on the next bar would this move be represented by a large upward slope. But when looking through a chart’s history, the TDI below that large bar would represent the move.

Can anyone explain this behavior? I’m using the red/green TDI which was given to use in BigE’s thread. When using the Strategy Tester, it never repaints. The value is generated at the beginning of each bar, and it never changes.

Hi Teh,

TDI doesn’t paint until after each closed candle, that’s why it’s such a reliable indicator. You really should wait until after each new closed candle to make an evaluation in live trading. My guess is that the strategy tester is painting the TDI based on the previous candle… that’s my guess.

:5: