While creating a strategy on Streak, we need to keep a few things in mind. Since the backtests are computed by a machine, there are a few restrictions that you might face. Let’s look at them.
Before moving on, let’s first explain what a Base Timeframe is. The candle interval of your strategy that you select in the 1st step is the Base Timeframe and it is crucial we know that before we move ahead with the details.
- Base Timeframe CANNOT be higher than the smallest time frame in condition
The Base Timeframe should always be ‘equal to or smaller’ than the smallest timeframe in the condition. It cannot be higher than that.
Refer to Image 1 below where the Base Timeframe is smaller than the timeframe in the condition.
Now Refer to Image 2 below, where the time frame in the condition is 5 min and the base timeframe has been changed from 1 min to 15 minutes. If you chose a higher Base Timeframe, then it will show an error. The reason is: you CAN NOT create a 5 min candle, with a 15 min candle but you CAN create a 15 min candle using three 5 min candles.
Suppose your candle interval is initially set at 5 mins. Now, while creating a condition, you will not be able to choose the time frames of your condition that are smaller than the candle interval. Refer to the Image 3 below. 1 min and 3 min time frames are not available for you to choose.
Suppose you put multiple conditions with multiple time frames. Refer to the image below. The First Condition is at 10 mins and the Second Condition is at 15 mins. Now, you may say that since ‘one of the conditions’ is at 15 mins time frame, you can select the 15 min candle interval. But you cannot do that. The candle interval cannot be higher than the smallest time frame in condition. The machine will check which among the two conditions has the smaller time frame and show the error accordingly. You can refer to Image 4 below.
- Time frame in condition should be a multiple of the candle interval
In Image 5 below, the candle interval is 3 min and the time frame in the condition continues to be 5 mins. This will not work and will show you an error. Again, the reason is: you CAN NOT create a 3 min candle, with 15 min candles but you CAN create a 15 min candle using 3 min candles.
Using different timeframes in the same strategy requires using “Compatible Candle Interval.” If you want to use a 15min time frame with a 5 min Base timeframe, it is possible. You can also use 10 min in the same strategy since 5 is a factor of both 10 and 15, 5×2=10 and 5×3=15. But you cannot use a 3 min candle interval for a 10 min condition since 3 is not a factor of 10.