Back Testing

The mathematical basis of technical analysis allows you to reduce a trading strategy to a formula. The formula simply describes the logic of the trading strategy. Of course, the trading strategy must be based upon variables that can be quantified and tracked over time. Then, a computer can be used to run the strategy’s logic against an historical data series.

• The computer tracks the decisions made by the mathematical logic, conducts hypothetical “buys” and “sells” of the subject investment, and then tallies up the results.

This is back testing. The computer allows you to test any number of variables of alternative approaches quickly and easily to develop an effective market timing strategy. And, once you have established an effective strategy, you can use back testing to simulate its performance over previous, historical periods and then use it on real-time data as well.

Signals generated via back-testing

Tickerplant Chart offers you the power of back-testing with simple user interface and efficient and effective generation of desired signals as per strategy.

Creation of new back-test with required conditions

You can set-up your own market strategy applying appropriate Long (Buy –Sell) OR Short (Short Sell-Exit Short) conveniently. At the same time you can filter the bad trade signals and minimize the execution, counterparty and liquidity associated risks by applying Stops.

Uses of operators, operands in condition generation