Dark pool trades are executed outside of public exchanges and are typically not visible to the public.
These trades are executed by large institutional investors through dark pool venues, essentially private exchanges that allow investors to trade with one another privately.
Our ORB backtester automatically integrates dark pool trades in the backtest results, providing a more accurate representation of how the strategy would have performed in the real world.
Pro Tip:
The inclusion of dark pool trades in the backtest results is just one of the many ways that the backtester provides a realistic and accurate representation of how the strategy would have performed in the real world.
It is worth noting that if a trade is marked as a loser in the backtest report, but looks like a winner on your brokerage platform’s charts, it is most likely due to a dark pool trade. In this case, our backtester has assumed the worst case scenario (aka a loss), whereas your charting platform has ignored the dark pool trade (given that the data is not available to display in the first place).
The inclusion of dark pool trades in the backtest results is just one of the many ways that the backtester provides a realistic and accurate representation of how the strategy would have performed in the real world.