Many traders trust automated strategies for success in prop trading. But what if your strategy gives false hope? One hidden issue is repainting—a sneaky behavior that makes backtests look perfect but fails in live markets.
Let’s break it down and learn how to protect yourself.
What is Repainting?
Repainting means your trading script changes its past signals using future data. This makes backtests look flawless—but in real-time, the signals either arrive too late or never show up.
This leads to:
- False entries and exits
- Overfitted backtest results
- Missed or bad trades in live sessions
Clue #1: Pivot Highs & Lows
One common repainting trick involves pivot highs and lows. These are points where price reverses. Some scripts use them for signals—but only confirm them after future candles form.
How to Check in Pine Script:
- Open your script in TradingView
- Search for
ta.pivothighorta.pivotlow - If present, the strategy may be repainting
Example:
The Elliott Wave or Zigzag indicators often rely on future candles to confirm pivots—making their signals unusable in real-time.
Why It Matters in Prop Trading Automation
In prop trading, every decision matters. If your strategy repaints, your risk models, kill switches, or ATR-based stops won’t work as expected. You may enter or exit too late—damaging performance and breaking firm rules.
What to Do in Prop Trading Automation
- Always test your scripts with bar replay mode
- Look for repainting functions like
security()withlookahead=barmerge.lookahead_on - Stick to real-time compatible signals in live automation tools like PickMyTrade
Final Tip
Using prop trading automation? Protect yourself—check your Pine Script for repainting today. Small clues like ta.pivothigh could be hiding big risks.
Also Checkout: Tradeify Prop Firm Review
