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Next: read how slippage works
It is the cost that most backtests leave out.
What is included
- What it is, in plain words
- The formula or mechanism, with exact arithmetic
- How it hits grid, martingale and DCA bots
- A check you can run before you switch a bot on
Who it is for
- People who run or plan to run a trading bot
- Anyone reading a backtest or a bot sales page
- Readers who want the numbers, not the pitch
- Not advice, and not a signal service
Key facts
- TradeStation is a platform where a bot or strategy is written, tested and run. This page explains the general method, not the product's current features.
- A bot is only as trustworthy as its test. Before relying on any result here, check costs, fills, data and timing, and keep a stretch of data the rule never saw.
- The worked example on this page uses made-up numbers, checked in node on 31 Oct 2026. It shows the arithmetic, not how any product performs.
- Prices, fees, markets, versions, limits and supported languages change and belong to the vendor. We state none of them. Check the vendor's current pages.
- Start on a simulated account, keep stops where they still work if the bot stops, and move to real money only in very small steps, if at all.
What it is
TradeStation is a trading platform and broker that has long been associated with a built-in strategy language, usually called EasyLanguage. The general idea, shared by several platforms of this kind, is that you write a strategy in the platform's own scripting language, attach it to a chart, and the platform both tests it on history and, if you choose, sends its orders to the connected account. One program does the charting, the testing and the order routing.
That makes the path from idea to automation short. It also means the backtest and the live run share one engine, which is useful, and one set of assumptions, which you must read. The details of the language, the account types, the markets and the fees are the vendor's to state and they change, so check the vendor's current pages for them. This page explains how it works in general terms. We have not tested it for this page. Check the vendor's current terms.
How a bot connects here
The connection style is built-in scripting. The strategy lives inside the platform and runs on its chart or portfolio window. You do not write network code. The platform handles the link to the account, and the strategy only states what it wants: enter, exit, size, stop.
- Strategy versus indicator. An indicator draws. A strategy places orders. Mixing them up is a common first mistake.
- Calculation timing. A strategy may act once per bar close or on every incoming tick. The two behave differently in a backtest and live. Find out which one yours uses.
- Automation switch. Platforms of this kind normally separate a strategy that is only drawing hypothetical trades on a chart from one that is allowed to send real orders. Know which state it is in.
- Data and account link. The platform needs a data feed and an account. A demo or simulated account normally exists for practice. Confirm the current options with the vendor.
Worked example: what costs do to a backtest
Take a made-up strategy on a made-up instrument. Over 100 trades it averages $45.00 gross per trade. Commission is $5.00 per round trip and one tick is worth $10. A backtest often starts with slippage set to zero, because that is the default of many tools. Here is the same strategy at three settings. Every number is made up and was checked in node.
| Slippage setting | Gross per trade | Commission | Slippage cost | Net per trade | 100 trades |
|---|---|---|---|---|---|
| Backtest with no slippage entered | $45.00 | $5.00 | $0.00 | $40.00 | $4,000 |
| 1 tick each side | $45.00 | $5.00 | $20.00 | $20.00 | $2,000 |
| 2 ticks each side | $45.00 | $5.00 | $40.00 | $0.00 | $0 |
With no slippage entered the strategy nets $40 a trade and $4,000 over 100 trades. At one tick each side it nets $20, which is 50% less. At two ticks each side the net is $0: the whole edge is gone. The rule did not change. Only an assumption did. Learn where your platform lets you enter slippage and commission, and enter honest numbers. See slippage.
What to verify before trusting a backtest here
These checks apply to any platform of this kind. The answers come from the vendor's current documentation and from your own tests, not from this page.
| Check | Why it matters |
|---|---|
| Slippage and commission are entered | The default may be zero, which flatters every result. |
| Fill model for orders on the same bar | Platforms must guess whether a stop or a target was hit first inside a bar. Read how yours decides. |
| Bar close versus every tick | A rule that acts on every tick cannot be tested faithfully on bars alone. |
| Data covers the sessions you will trade | Check start and end dates, gaps and how continuous futures contracts are joined. |
| Position size and margin | A test that ignores margin can take positions the live account could not hold. |
| Results on data the rule never saw | See walk forward testing and forward testing. |
How bots break on this kind of platform
- Strategy left running on a stale chart. If the chart window or the platform closes, the strategy stops, and any open position is unmanaged.
- Position mismatch after a restart. The strategy believes it is flat while the account holds a position, or the reverse. Reconcile on start.
- Data gaps. A feed drop can skip bars. The signal you tested is not the signal you get.
- Rollover. Futures contracts expire. A strategy that is not told about the roll can hold the wrong contract.
- Rejected orders. A size or margin rejection leaves the strategy waiting for a fill that never comes.
A safe order of work
Backtest with honest costs, forward test on new data, run on a simulated account for weeks, then trade a very small size and compare each step with the one before. See forward testing and paper trading.
What this page does not tell you
It does not tell you whether the product is suitable, what it costs, or how it behaves today. Those change and belong to the vendor. It does not give a strategy to trade. This page explains how it works in general terms. We have not tested it for this page. Check the vendor's current terms.
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FAQ
Frequently Asked Questions
What language does TradeStation use for automated strategies?
Historically a proprietary scripting language called EasyLanguage. Check the vendor for what is current, including any additional options.
Can I test a strategy before running it live?
Platforms of this kind can run a strategy over historical data and normally offer a simulated account. Confirm what is available and any limits with the vendor.
Does a good TradeStation backtest mean a bot will make money?
No. A backtest shows how a rule behaved on past data under its assumptions. Costs, fills, data and luck can all make live results different.
Should I test on a simulated account before real money?
Yes, as a general practice. A simulated account tests your code and your plumbing. Its fills are usually kinder than real ones, so it does not prove a rule works.
Have you tested TradeStation?
No. This page explains how it works in general terms and we have not tested it for this page. Check the vendor's current terms.
Are the numbers on this page real?
Example numbers are made up to show how the maths works, and the page says so. A figure only counts as exact when the page says it was calculated on a stated date. Nothing you enter in a calculator leaves your browser.
Can I use this to decide whether to run a bot?
It can show whether a bot's numbers hold together and how much an account can lose. It cannot say what the market will do, and it is not advice. Use it to ask better questions, then read the terms of your own broker or exchange.
Is this financial advice?
No. It is general education. The numbers are made up and it does not consider your situation.
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