G'day all, I'm trying to get my head around how the backtester uses the available price data to test a system.
As an example, say I have an hourly system. In AA -> Settings I set the Periodicity to Hourly. However, in my price data, that hour is made up of 12 x 5min bars. Does the backtester use the lowest available timeframe (in this case 5min bars) to test the system on? Or, is there some settings that need to be included to tell it to do so, rather than using just the OHLC of the hour bar, which can never be truly representative of that hour's movement? Or, is this where the custom backtester comes in? If I were to set Periodicity to the data's lowest timeframe then any indicators I use will not be valid because they were designed for the 1hr TF and not the 5min TF. I hope this makes sense. Cheers, Andrew.