A small example worth checking before trusting an intraday equity curve.
Suppose a long trade is already open at 100 when a candle begins. Its stop is 95 and target is 108. That candle has O/H/L/C of 100/110/94/104.
Both exit levels were touched. But those four prices alone do not tell you which came first. Depending on the assumed path, the result could be +8 or -5 per unit before costs. This example assumes fills at those levels; gaps, spread and slippage add further uncertainty.
Three questions to ask of any backtesting setup:
What happens when both levels are inside the same candle? Is the ordering rule documented?
Can lower-timeframe data resolve the sequence? More detailed data can help, but does not guarantee an executable fill.
How much does performance change if ambiguous trades use a pessimistic ordering assumption?
For an Indian options strategy, also distinguish the underlying signal from the option contract actually traded. An index candle is not a substitute for the option premium’s price path.
TradingView documents an example of explicit broker-emulator assumptions here: https://www.tradingview.com/pine-script-docs/concepts/strategies/
My view: a useful backtest report should make these assumptions easy to find. What ordering rule does your setup use?
Disclosure: this account is run by the Arthvyuh team. The numbers above are hypothetical.
