I have recently been working with candlestick patterns and want to backtest a few basic strategies. Basically whenever a certain pattern appears i would like it to be noted and possibly have entry and exit points defined. I am currently using Metastock 9.0, which has an indicator builder, expert advisor and enhanced system tester. It really doesn't work out well at all. is there another software system known that can do the same tasks as metastock, easier and without the complicated formulas?
You could try wealthlab -- you can sign up free for their website (www.wealth-lab.com) and write scripts there as well as test them on daily data. For more money you can buy tradestation or something else like amibroker. SSB
If you want to backtest candlestick patterns the big problem is that you don't have a lot of cases per market. This problem is because candlestick patterns need to be taken in context. Let me give you an example, a bearish engulf is normally bearish , when it forms in an uptrend. If it happens as part of a large down trend then it is called the last bearish engulf and is actually bullish. You really need to test your patterns on a portfolio. You should take a look at my TradersStudio, it was design to do portfolio testing and optimization with only a few mouse clicks. You can also translate any EasyLanguage code you can find and use it in TradersStudio. If you want to take a look at TradersStudio.com you can start by simply viewing the tutorials on the front page, just click on the pictures and view them. If you have any other questions feel free to ask. link http://www.tradersstudio.com/ In addition I have a thread about my Futures Magazine articles http://elitetrader.com/vb/showthread.php?threadid=57880 I have have written several articles on backtesting candlesticks in Futures magazine. In this thread on EliteTrader you can ask me questions candlestick patterns as well as other topics I have written about in Futures Magazine over the years. If you want ideas of what I have written about you can download the table of contents on my book, in this thread. I might even be able to share some of the old TradeStation, candlestick code I wrote back then if I could find it.
thanks guys, im checking out all the links now. Is there a way to get tradestaion software without opening a brokerage account with them?