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How to Backtest a strategy? Rate this Topic:
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markag
Posted : Wednesday, December 13, 2006 7:26:30 AM
Registered User
Joined: 2/19/2005
Posts: 38
Hi all,

I'd like your ideas on how you backtest a buy/sell strategy based on a chart. For example, let's assume I am using a chart that has MA12,MA26,MA40,MA50 with MACD12,26,9 settings. I decide that

a BUY is a bullish MACD cross of the signal line when all three MA's are trending up and MA12>MA26>MA40.

a SELL is a 2-day violation of the MA40 or any violation of the MA50.

Using the DJ30, would you go back over each stock and record BUY and SELL signals and their prices over the past year for each stock and see how the return is?

How do you backtest a chart strategy?

Regards,
Mark
Craig_S
Posted : Wednesday, December 13, 2006 7:33:51 AM


Worden Trainer

Joined: 10/1/2004
Posts: 18,819
This can be done in SnapSheets with the BackScanner. Have you downloaded SnapSheets and activated BackScanner?

For information, videos and to download SnapSheets (which uses the TeleChart data feed), please check out the SnapSheets Web Site

For information, videos and to activate BackScanner, please check out the BackScanner Site

- Craig
Here to Help!
markag
Posted : Thursday, December 14, 2006 12:17:09 PM
Registered User
Joined: 2/19/2005
Posts: 38
I just DL'd SnapSheets - Wow!

I have some reading and some tutorials to go through tonight...

Thx.
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