Software For Backtesting

Discussion in 'General Trading Discussion' started by J_C_Anderson, Dec 12, 2018.

  1. J_C_Anderson

    J_C_Anderson Senior Investor

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    Hi,

    Do anyone has experience with special software for testing strategies? The idea is to check ideas using historical data. Demo testing is good, but it takes too much time, so it would be interesting to find something that could save time.

    Are there any tools you can enter your strategy in and check it in general or try to change some details?
     
  2. Phidius

    Phidius Member

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    To test a strategy you can use Microsoft Excel. The key is to have an algorithm, then you can plug in different values and then chart the results.

    You didn't mention any specifics, so in general I believe this is the most common way.

    For stock simulations look at webull or stock trainer in app store.

    I have a referral link for webull if you decide to try it. Good luck.

    Sent from my SM-G950U1 using Tapatalk
     
    Last edited: Dec 13, 2018
  3. J_C_Anderson

    J_C_Anderson Senior Investor

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    MS Excel is a perfect tool, but it is mostly for testing ideas in general.

    As for me, webull is the best mobile charting app, but as far as I know it has something like demo trading mode, not a back tester.

    The idea was to find the way to test strategies using historical data, because in case of demo testing you need to make dozens of trades to get reliable result.
     
  4. Phidius

    Phidius Member

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    So we are looking for the program the High Frequency Trading Machines use in the modern environment?

    See the computers in this study (save time by jumping to 7:02 minutes):


    Sent from my SM-G950U1 using Tapatalk
     
  5. gowiththeflow

    gowiththeflow Senior Investor

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    In some markets/sectors we are in a situation where there is so much program trading that at times (often low trading volumes) the computerised systems can actually create self-fulfilling prophecies.
     
  6. J_C_Anderson

    J_C_Anderson Senior Investor

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    For sure, sometimes over than 70% if daily volume could be traded by computer system. That is why it would be interesting to know, how the market dynamic would change, as systems have no emotions as fear or hope, they just execute the strategy.
     
  7. J_C_Anderson

    J_C_Anderson Senior Investor

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    By the way, are there anyone trading just with idnicators?
    As for me, indicator-based strategies could be more complicated than those based on the price patterns. At the same time, such strategies give more flexibility
     
  8. fxstreet

    fxstreet Senior Investor

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    I believe they are quicker and more reliable, as they are already designed to suit your trade patterns. Unless you don't know when and how to apply them. I have applied several indicator based strategies. I just pulled up one of the ones I used some time ago. It is focused on the Fractals. Here: https://www.forexchief.com/library/forex-strategy/forex-fractals-strategy/
     
    Last edited: Feb 28, 2019
  9. J_C_Anderson

    J_C_Anderson Senior Investor

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    It seems to be quite interesting, than you. I`ve heared about the Fractals before, but have no experience with this sphere.
    Most of the indicator-based strategies popular in the Web are based on different combinations of Moving Averages (for example, different variations on Crossover strategy). Some other strategies adopt more complicated indicators like MACD or oscillator.
    As for me, the most important point in such strategies is that they can be easily "explained" to the machine (trading robot, for example)
     

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