backtesting

hi all, w/ all the experienced traders here, i'd like to know if you backtest your trading pattern? to optimize it? which software do you use for backtesting? and what are their advantage/disadvantage/price? the reason i'm asking is that i keep having these ideas and pattern pop up in my head/daily charts, i would print out a month worth of data to check, some of them seem to work, some don't, but id' like to check back a longer timeframe, as well as some specific way to quantify the method, etc.

thanks in advance for your suggestions/
nov

 

See the thread that was just updated:

http://www.elitetrader.com/vb/showthread.php?threadid=1427

You can contact CQG, as well. They are working on back-testing capablities.

http://www.cqg.com/

 

thanks tymjr , i'm actually looking at aiq right now, maybe order it next week, anybody has any experience w/ it?

nov-

 

I didn’t get a chance to answer your question the other day so I wanted to include some of my thoughts on the subject. If your new to programming, ease of use is a consideration, but the amount of educational information available and the software’s ability to meet your needs as you develop your concepts are both extremely important. A good place to pose your original question is on Le Beau’s System Traders site:

http://traderclub.com/


I do not currently use Tradestation or Metastock, but both are probably the most pervasive pieces of system development software today. There is an enormous amount of EasyLanguage code floating around on the web, in magazines, and in books. While an individual piece may not specifically define an idea you are working on, you may find parts of code you can use and modify to meet your needs.

Additionally, you can pose questions on the Omega-List, where other developers are exchanging ideas. Granted, beginners primarily frequent the list, but there are a few well-heeled members who are very helpful.

Finally, the number of third-party tools for TS and MS are numerous, and, in some cases, offer advantages that would be difficult for a novice programmer to develop without years of experience.

As I said in the beginning, your choice depends on your experience, the extent to which you feel you will pursue system development, and the type of trading you will be doing. Good luck.