Examples of using Backtesting in English and their translations into Russian
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Traders should take backtesting really seriously.
Manual backtesting which is used within discretionary trading.
This must be borne in mind both during backtesting and papertrading.
Automated backtesting falls into more advanced areas of trading.
We define the market(or markets)on which we will perform backtesting.
It is because the backtesting will include many different situations.
In this chapter we have explained the differences between the manual and automated backtesting.
If the value is negative, the backtesting showed that the strategy brought a loss.
You will not underestimate the workflow andthe preparation for the work with historical stock pair data and its backtesting.
Manual backtesting is suitable for traders who like having everything under control.
A disadvantage of this approach is a very slow and limited backtesting of our trading strategies.
You learned that the backtesting results are also used for evaluation of your trading system s performance.
The point is that the worst drawdown you experienced within backtesting can be much worse in live trading.
In order to be able to perform backtesting we need to define the rules for opening and closing individual positions.
Please take into consideration that BTC-e exchange charges a commission for each order, andit should be taken into the calculation while backtesting.
Our goal should always be to detect such trading systems the backtesting of which will then show stable profits.
After we finished the backtesting there is another next piece of work ahead us- we have to evaluate the trading system s potential.
Some internal defence mechanism commands us to believe that there will be no worse drawdown than the one we experienced within backtesting.
Another advantage of using ATS is the possibility of building, backtesting, optimisation, and robustness testing of trading systems.
Such a sample is usually sufficient to confirm the correlation(similarity)between the trading system s performance in backtesting and papertrading.
A disadvantage of manual backtesting, on the other hand, is its time-consumingness and innate tendencies of each trader to"improve" their trade results.
Algostudiocompatible with C and MQL4 with plenty ofuseful tools including precise, reliable feed, backtesting, optimization and statistics.
Backtesting(or backtest) is the process of testing a trading system s efficiency(profitability) on historical data of a particular market or a group of markets.
These days, there are many trading platforms, such as NinjaTrader, MetaTrader, AmiBroker, and TradeStation,that can perform this basic backtesting.
For example, I regard backtesting only as a test that shows me the potential profitability of the trading system on the historical data for the selected market.
The company offers to its traders charting and analysis, alert scanning,market execution, backtesting capabilities, auto-trading, single-click trading.
We must not forget that within the backtesting this trading system executed nearly 1,200 trades during the last 10 years, which is a very good statistical sample.
Obtaining of usable results by testing of trading systems and sets of trading rules on the current market data would require too much time,therefore we use the method of backtesting instead.
Here we use a simple premise that we want to trade via such a system the backtesting of which with various indicator settings showed a sufficient profitability.
After a properly performed backtesting when the trader verifies whether his trading system has a real potential for profitability, he should use the system within a simulated trading- papertrading.