Stop loss and take profit on the same tick

[Amanhasnoname]

On a very fast move, price can jump from inside the range to beyond both the stop and the target in a single tick. Which one executes depends on the server's logic, and the outcome is rarely what the trader would prefer.

In live trading, it happens during news gaps or extreme volatility. A position with a tight stop and tight target, perhaps three pips each side, can see a jump of ten pips. Typically the first one in the server's evaluation order triggers, and the other cancels.

In backtests, the question arises with candle data. If both levels lie within a single candle, the tester has to guess. Many default to assuming the stop was hit first, others the target. The assumption can swing results dramatically.

To avoid mistakes in testing, use tick data, where the sequence is explicit, and check how many trades have both levels inside one tick interval.

In live conditions, wider levels during volatile events reduce the chance of double-trigger ambiguity.

How often do stop and target fall within the same candle in the strategy's backtest?