I am frequently asked how long one should backtest a online daytrading system. Though there’s no easy answer, I will provide you with some guidelines. There are a few factors that you need to consider when determining the period for backtesting your online daytrading system:
Trade frequency
How many trades per day does your daytrading system generate? [...]
Posts Tagged ‘Online Daytrading’
March 22nd, 2010
How long should I backtest a online daytrading system?
Posted in Investing 
Tags: Assumptions, Daily Volume, Daytrading System, Different Market, Liquidity, Market Participants, Mini System, Online Daytrading, Online Trades
Tags: Assumptions, Daily Volume, Daytrading System, Different Market, Liquidity, Market Participants, Mini System, Online Daytrading, Online TradesMarch 19th, 2010
How do I backtest the right way?
Posted in Investing Tags: August And September, Backtesting Software, Business Day, Commissions, Day Trades, Day Trading, Dramatic Change, Intraday Trends, Leverage, Margin Account, Minimum Equity, Nasd, Nyse, Online Daytrading, Software Packages, Stock Daytraders, Strategy Execution, System Developers, Ticks, Tradestation
Tags: August And September, Backtesting Software, Business Day, Commissions, Day Trades, Day Trading, Dramatic Change, Intraday Trends, Leverage, Margin Account, Minimum Equity, Nasd, Nyse, Online Daytrading, Software Packages, Stock Daytraders, Strategy Execution, System Developers, Ticks, TradestationIn my opinion backtesting can be a very powerful tool if used correctly.
The problem is that many traders over-use the functions provided by the different backtesting software packages and think more is better. Many so-called system developers try to imply that the longer you backtest the better and more robust your system will be. That’s [...]