Which Software Do You Prefer for Backtesing?

Raj24061975 · #1 28th September 2005, 08:48 PM

Do you Backtest Your Trading System?

Is Trading System Backtesting realy works?

Which Software do you use for backtesting?

What are the pros and cons of that Software?

Are you satisfied with your backtesting software?

Are you looking for another backtesting software?

Plese Share your views with the us!

Traderji · #2 29th September 2005, 07:59 AM

One can use a variety of technical analysis software for back testing a trading system.

A system/methodology that looks good in a back-test or in paper trading may not do well in real trading. Backtesting and paper trading are valuable tools. I paper-trade every new concept before committing capital to the idea.

Backtesting and paper trading allows testing in a risk-free environment, can help you refine your techniques, encourage discipline, and save you a lot of pain/losses during the testing/educational cycle. But backtesting/paper-trading is not trading. During a paper-trading exercise, your focus is on testing for success. During real trading, your focus is often on preventing loss. Emotions come into play during real trading; no amount of paper trading can cater to this reality. Backtesting in the futures arena usually involves "back-adjusted" continuous contracts.

These adjusted continuous contracts do not represent real prices, or a real trading environment accurately. All backtesting results should be treated appropriately. Also, most backtesting excercises dramatically underestimate trading costs and slippage.

Raj24061975 · #3 30th September 2005, 12:00 PM

Thanks Traderji,

Ii is good to know ur view about backtesting.

I Hope other forum members will like to exchange there views about backtesting here so that we all can take advantage of their knowledge.

jamesalex_us · #4 1st October 2005, 07:22 PM

Quote:

Originally Posted by Raj24061975

Thanks Traderji,

Ii is good to know ur view about backtesting.

I Hope other forum members will like to exchange there views about backtesting here so that we all can take advantage of their knowledge.

Hi All

Backtesting a system will give you virtually the confidence to trade or not to trade. In trading 90% is your attitude, if you are discliplined with strict Money Management you are bound to gain otherwise you would be one of those 90% who loose their account and sit byside and say does someone makes money. Every penny lost is every penny gain. Someone looses and someone gains.

I backtest every strategy that comes into my mind. For this you should have proper tools to backtest.

With Metastock, I have made my own template which gives the winners/loosers ratio along with the profit/loss ratio starting from the first bar of the data.

You can also use TradeSim, the best backtesting tool for Metastock.

For TradeStation, Safix-X v3.4 or above is the best backtesting Addon.

Regards
James Alex
Trend is your FRIENd, FOLLOW it

abdur · #5 1st October 2005, 09:16 PM

advance get is the best software from which any one can make profit easily
if he well trend about that software.

alokdaga · #6 2nd October 2005, 11:31 AM

Quote:

Originally Posted by abdur

advance get is the best software from which any one can make profit easily
if he well trend about that software.

Hi Abdur,

Are you using GET? Have you backtested any scrip for last 3 years. I will be much grateful if you could send me backtest data for that as I am also a GET user but still not convinced enough to trade with GET.

Regards

Alok

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