Strategy Testing - which Tests are you using?

Discussion in 'Automated Trading' started by Wippi1817, Jul 9, 2020.

  1. Hello,

    currently I am collection all possible strategy test which are currently used. Would be great if you can help me out with your knowledge. There exists a couple of test methods in order to see if a strategy works or not.

    Which tests are you using?

    Forex-Tamil likes this.
  2. The following strategies I currently use:

    Backtesting with default parameters on a small data set (approx. 2 years) in order to see if the profit is positive

    • Walk Forward Test in order to check the robustness

    • Monkey Test in order to beat randomness (replace Entry and/or Exit)

    • Fixed Exit Test replace Exit with fixed bar length in order to see the performance of the Entry
    Atikon and Dazz like this.
  3. Unit tests
    Regression tests
    Doc tests
    Integration test
    System test

    Atikon likes this.
  4. Peter8519


    The trouble with testing....we never stop testing until we get the results that we are expecting.
    Craig66 likes this.
  5. Dazz


    Also be aware that back testing with Ninja 8 is corrupt and will yield any kind of accurate results - according to Ninja.
  6. Atikon


    lol what do you mean according to ninja? :D they shit on their own program?
    Disclosure: Nothing to do with Ninja8
    Dazz likes this.
  7. lol is necessary but not for the strategy :)
  8. is only a problem when you have no pocket of strategies
  9. Dazz


    what I meant is they Ninja will provide a dozen well-developed reasons why back tested results are not accurate and not their fault!
    Atikon likes this.
  10. Karin42


    Actually, a lot depends on your chosen strategy, because each of them has its own unique features. And that's where you're going to have to deal with it in more detail...
    But still, there are some rules that I try to follow regularly when testing some new approach or something like that.
    1. You should definitely start with a demo, because this is the safest way to test a strategy. It is very important that the demo terminal coincides with the main trading terminal as much as possible or is completely similar to it.
    2. You need to understand the conditions under which this strategy works (especially if it is not mentioned in its characteristics). You need to see under which assets or time parameters it works much better.
    3. And be sure to take the time to test it. You need at least a month to figure out whether this works for you or not.
    #10     Jul 14, 2020