Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

robin73736

BACKTESTING - How to Start?

Recommended Posts

Need more info like time frame you're trading. Ninjatrader records market price movements for you and it's great for day trading (which I magically use for trading weekly charts lol). You can also purchase historical price movements on CD but I forgot where you get those.

 

You could get sim accounts too but IMHO trading sims and backtesting will never be as good as real world testing.

Share this post


Link to post
Share on other sites

you have to spesific your question by adding manual trade backtesting.

many people would think, it's an EA backesting. for ea backtest you can start with strategy teste on metatrader. for backtest manu trading plan, i use a script on my Armada Markets platform called "LFH trading simulator" it's a simulator for your manual trading strategies.

check attachment for the file.

armada markets_Trading_Simulator.zip

Share this post


Link to post
Share on other sites

At a time I did a lot of backtesting on various platforms.

 

The perfect equity growth turned into free-fall almost immediately and almost always.

 

Best results can be achieved by backtesting and getting out of sample date on most recent data. Frequent re-backtesting every x-/days/weeks/months/years (depending on the timeframe you trade) is preferable.

Share this post


Link to post
Share on other sites

Automated backtesting any given strategy isn't a good idea unless you are going to be using that same automated system in live trading.

 

In my opinion, if you are manually trading, manual backtesting is the way to go. Since you will be trading with your own discretion, I don't find automated backtesting useful, and even deceitful. You won't trade like a computer in a live environment, so you need to test in a way that most accurately imitates how you will trade or it isn't worth much.

 

When I started trading currencies, I wanted to test some of the price action strategies I was going to be trading. So I just made an excel spreadsheet and put data in it. For example, I took a strategy and started like 2 years in the past on the 8 hour EUR/USD chart. Whenever I'd find it, I'd go through the strategy and find out if I would have won or lost, and how much I would have won or lost. You can plug this data into excel and calculate a whole range of different statistics. You will not only get useful data, you will also learn to become an excellent chart reader with a great feel for how the market you are trading moves. You can't get that sort of incredible utility from automation.

Share this post


Link to post
Share on other sites
Automated backtesting any given strategy isn't a good idea unless you are going to be using that same automated system in live trading.

 

It appears that you are saying: "ok I am going to backtest this strategy, but I'll use another one for live trading". What is the point?

 

In my opinion, if you are manually trading, manual backtesting is the way to go. Since you will be trading with your own discretion,

 

Automation is always preferable since it just makes all calculation easier. If by "discretion" you are referring to partial trading without using rules, then you are gambling.

Share this post


Link to post
Share on other sites
It appears that you are saying: "ok I am going to backtest this strategy, but I'll use another one for live trading". What is the point?

 

I didn't say that - I basically said that if you are going to backtest, it would make more sense to test in a manner that you would be trading. If you are a discretionary trader who is not using automation to execute trades, you should backtest your strategy by chart reading manually. That makes most sense to me, and I think a lot of people would agree with that.

 

 

Automation is always preferable since it just makes all calculation easier. If by "discretion" you are referring to partial trading without using rules, then you are gambling.

 

 

By discretionary, I don't mean that you don't have a plan - it means that you have the ability to use some subjective reasoning to read market context and setups. The best price action traders, for example, have worked out their setups in a pretty black and white manner, but knowing when to execute the setups and money management can be a highly subjective thing based on experience and individual skill.

 

It's extremely difficult to automate strategies - it is not a simple issue of making a computer do A when B happens. Trading is far more complex than that. For that reason, it is going to be very tough to be able to rely on automated backtesting, unless you ARE going to be using automation and are going to be trading with that same automated strategy that you just tested.

Share this post


Link to post
Share on other sites
Hi, is there a very easy way to test simple strategies?

I just want the easiest possible way to play around with some ideas.

 

Thank you,

Robin

 

Have you looked at TradeStation?

It's not necessarily "easy" (for everyone) - but it still may be the "easiest" way to prototype simple strategies

 

hth

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • $CMG Chipotle Mexican Grill stock with a narrow range breakout watch above 1070.8 , see https://stockconsultant.com/?CMG
    • $AGIO Agios Pharmaceuticals stock with a solid top of range breakout above 54.62, from Stocks To Watch , see https://stockconsultant.com/?AGIO
    • Date : 1st July 2020.   US Data – ADP, PMIs & Vaccine News.     EURUSD, H1   US ADP reported private payrolls rose 2.369 million in June. Also, May was revised sharply higher, by 5.825 million to a 3.065 million increase (was -2.760 million). April’s -19.409 million was a record plunge. Jobs in the goods production sector increased 457,000, with construction jobs up 394,000. Service sector employment increased 1.912 million, with gains of 961,000 in leisure/hospitality, 283,000 in education/health, and 151,000 in professional/business services. A robust private payrolls. The ADP climb beats the modest improvement in the continuing and initial claims data for the period, but undershoots the bigger sales, sentiment, and output gains in other measures, and is in line with the payroll gain expected for tomorrow’s jobs report. ADP gains were fairly evenly dispersed across increases of 873,000 for large companies, 559,000 for medium companies, and 937,000 for small companies.   US final June Markit manufacturing rose to 49.8 (was 49.6 in the preliminary) from May’s 39.8. It is a fourth month of contraction and was at 50.6 a year ago. But the weakness is abating from the 36.1 record low from April amid re-openings of the economy. The 10-point surge in the index was a record jump, and it is now the highest reading since February. Output climbed to 47.5 from May’s 34.4, with new orders also moving higher.   US equity markets have opened in positive territory, rebounding from early losses on the futures market following reports of positive results on a vaccine from Pfizer and BioNTech.   EURUSD pushes towards 1.1250 following a dip to 1.1184 earlier, USDJPY pivots around 107.50, down from Asian session highs at 108.06 and the USA500 trades at 3115 and highs of the day. FOMC Minutes due at 18:00 GMT.   Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HotForex Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news. Stuart Cowell Head Market Analyst HotForex Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission. 
    • $LOW Lowes stock with a narrow range breakout watch above 136.67 , see https://stockconsultant.com/?LOW
    • $HEXO stock watch, moving higher off that 0.719 triple+ support area , see https://stockconsultant.com/?HEXO
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.