Backtesting question

Discussion in 'Trading' started by PaulRon, Mar 26, 2008.

  1. PaulRon

    PaulRon

    Hi, I'm looking to start backtesting some strategies seeing as I will be starting at a prop firm in a couple months as a new trader and want some experience going into it. What's the best available software for backtesting?
     
  2. PaulRon

    PaulRon

    blimp
     
  3. Listen, you are probably wondering why nobody answers. Did you ask your self why? I'll tell you why. It has been discussed here 1000 times already! So, don't be lazy bum and do the forums search! You'll find a tone of answers!
     
  4. maxpi

    maxpi

    I'm using Openquant, it's the best, by far, I've ever used but learning it in a couple of months, maybe if you are a C# programmer already. Your question might better be stated as "what can I get up and running and master in a couple of months" and I don't think there is a good answer to that one, maybe one of the "point and shoot" varities where you can use built in functions and it requires no programming.
     
  5. PaulRon

    PaulRon

    thx max - maybe i got the terminology wrong but i'm just looking to paper trade old data to get used to the feel of trading and strategies
     
  6. (You won't like this...but)

    IMO, backtesting is of little or no value. I might tell you what "won't" work, but it in no way can tell you what "will" work. Same with papertrading...other than helping to learn how to use the mouse and keyboard, pretty much worthless (like playing poker for matchsticks).

    There is too much peripheral data/action going on that cannot be put into any sort of back test. You can't program in PREM/DISC to FV at certain points during the day, you can't know news items, earnings information (at least the reaction to earnings, etc.)... and a zillion other factors that make all the difference in the world.

    If you think you have a "system" - try it, if you make money, continue...if you don't then stop.

    FWIW,

    Don
     
  7. "Best" depends on trading style and personal preferences. Consider reviewing several packages that offer free trials to help find one that suits you.

    A search of Elite Trader -- using keywords "backtesting software" -- will produce enough hits to give you a decent start on narrowing the field to a few for further review.
     
  8. WHat kind of firm hired you with no experience for a position a couple months down the road?
     
  9. PaulRon

    PaulRon

    the desperate kind.
     
  10. bighog

    bighog Guest

    Did you backtest Ron Paul?
     
    #10     Mar 26, 2008