Back Testing of Trading Systems

A Trading System should only be used for a security when it has proved itself to have worked well in the past. For this very reason Stockalyze Professional has a feature which allows you to test a Trading System on a given security.

Invoking Simple System Tester

To initiate system testing go to 'Tool->Simple System Tester' menu item.

Simple System Tester menu item

Simple System Tester menu item

A dialog will appear where you can set all parameters of system testing.

Simple System Tester dialog

Simple System Tester dialog

You can select the Trading System that you want to test by clicking 'Select System ...'.

Trading System Dialog

Trading System dialog

When Trading System dialog appears you can select the system you want to test.

Stockalyze Professional comes with many built-in Trading Systems. If you don't find the system in the list then you can add Trading System of your own.

Next you need to supply the symbol you want the Trading System to be tested for. You can also change default values of other parameters like stop-loss, stop-profit-erosion, duration of testing, and periodicity of the data.

Simple System Test Report

Below is a snapshot of test report of CCI Trading System run for ADBE (traded on NASDAQ) for the duration 2008 and 2009.

Simple System Test Report:  part-I

Simple System Test Report: part-I

Simple System Test Report:  part-II

Simple System Test Report: part-II