Backtesting - futures io
futures io futures trading


Backtesting is the process of evaluating a trading method using historical data. By looking for statistical significance of how the method performed in the past, one can make an attempt to predict how a trading method might perform in the future.

Example Equity Curve during backtestingExample Equity Curve during backtesting

Some popular trading platforms that include the ability to backtest trading methods include: NinjaTrader, TradeStation, and MultiCharts.

While backtesting can reveal a strength or weakness in a method, the results are not always correlated to future outcomes. You can use a large sample size such as 5 years of market data, or more, and still fall victim to over fitting or curve fitting your method to fit the historical data, instead of merely data mining to a positive outcome.


[top]In-depth 2 hour webinar on backtesting
Big Mike and Manesh Patel discuss Automated Trading and Backtesting in-depth in a 2-hour webinar dated Thursday, May 10th 2012. Topics included: Human vs Automation, Data for Backtesting, Data Mining, Curve Fitting, In-sample vs Out-of-sample, Process Diagram, Discussion of prerequisites and common pitfalls, discussion of important performance metrics to consider during a backtesting, and much more.

The webinar is available here (for Elite Members):
This article is a stub. Please edit the article to improve it and add additional details.
In-depth Webinar Video on Backtesting (2 hours) [Elite Members only]

There are not currently any references cited in the article.

automated trading, automatically, backtesting, data, data mining, elite, equity curve, es, futures, historical data, market data, multicharts, ninja, ninjatrader, sample, size, statistical, strength, tradestation, trading, trading method, trading platforms, webinar, webinars

All times are GMT -4. The time now is 12:28 AM. (this page content is cached, log in for real-time version)

Copyright © 2019 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432 WhatsApp Business,
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.