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> Do you suppose it only uses that resolution for entries and exits,
> but not for calculations such as my average?
Exactly. When you run on 1min bars, TS calculates averages &etc
on 1min bars. Period.
If you don't switch on the Backtesting Resolution, then the 1min
OHLC values are ALL that TS uses for calculating entries and
exits. If you have only one stop per bar, that's good enough.
If that single stop is between the bar's H and L, you know it was
hit, and that's all you need.
But if you have multiple stops active in a single bar, OHLC is
not enough to tell you what order they get hit. Suppose you're
looking at 60min bars, and your system enters at the close a bar.
You place a profit target AND a stoploss, and suppose the next
60min bar encompasses BOTH of those stops. Which one got hit
first? Did you get a profit exit or a loss exit? (You could
easily argue that your stops are too tight and you shouldn't be
able to hit both stops in the same bar, but for now let's assume
that's what your system does.)
If all you know is OHLC, you can't tell which stop got hit first.
TS has a method to guess, but it's just a guess.
If you turn on Backtesting Resolution, and you have higher
resolution data than your 60min bar (tick, 1min, whatever), then
TS can use that resolution "inside" the 60min bar to decide which
stop really got hit first.
But whether you turn on the Backtesting Resolution or not, all
average &etc calculations use the close-of-bar values.
Gary
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