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Old 08-28-2010, 01:26 PM   #1

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Backtesting Trading Systems

All,
I'm interested in developing some robust medium-time-frame trading systems that I can evaluate by backtesting. I'm looking for soild recommendations on which software people use and why they like it.

Thanks,

OptionsMike
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Old 08-28-2010, 07:55 PM   #2

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Re: Backtesting Trading Systems

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Originally Posted by OptionsMike »
All,
I'm interested in developing some robust medium-time-frame trading systems that I can evaluate by backtesting. I'm looking for soild recommendations on which software people use and why they like it.

Thanks,

OptionsMike
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Old 08-30-2010, 06:29 PM   #3

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Re: Backtesting Trading Systems

OptionsMike,

Here is a great review on various backtesting systems

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Old 08-31-2010, 04:00 PM   #4

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Re: Backtesting Trading Systems

Developing a trading system is not easy. It requires first of all good trading experience. Than you need to test your trading system under live trading conditions. It might take time as well as involve the risk of losing money. To overcome this difficulty in testing a trading system or a trading strategy, backtesting has been developed. Backtesting is possible with the use of software. A trading system might comprise of a set of two or more indicators with a set of rules that tell when to enter or exit the trade.
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Old 09-03-2010, 05:33 PM   #5

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Re: Backtesting Trading Systems

Hello Manolo,
Thanks for your response. I agree with your comments. Do you use any particular software? And how does it work for you? I have been using Wealth-Lab but I do not like all aspects of this program. I have been checking out Tradery products and StrataSearch products but have not formed an opinion yet. Wishing you successful trading.

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Old 09-06-2010, 02:09 AM   #6

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Re: Backtesting Trading Systems

BacktestingXL is an add-in for backtesting trading strategies in Microsoft Excel. It enables you to test and evaluate end-of-day trading strategies using historical data.

Users can use VBA (Visual Basic for Applications) to build strategies for BacktestingXL. However, VBA knowledge is optional - in addition to using VBA-constructed trading rules, you can construct trading rules on a spreadsheet using standard pre-made backtesting codes. For more information please visit the Strategy Creation section.

Sample backtesting strategies are available to download for free. They demonstrate how BacktestingXL can be efficiently applied. The following strategies are available:

SMA Cross
New High
New Low
Rainbow Max
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Old 09-07-2010, 09:39 PM   #7

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Re: Backtesting Trading Systems

Chrisadam,
Thanks very much for he ideas. I'll check into them!

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Old 09-20-2010, 05:28 PM   #8

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Re: Backtesting Trading Systems

Many trades per day does your trading system generate? It’s not important how long you backtest a trading system; it’s important that you receive enough trades to make statistically valid assumptions*: If your trading system generates three trades per day, i.e. 600 trades per year, then a year of testing gives you enough data to make reliable assumptions*. But if your trading system generates only three trades per month, i.e. 36 trades per year, then you should backtest a couple of years to receive reliable data.
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