“I’ve never seen a bad backtest” — Dimitris Melas, head of research at MSCI. About backtests A backtest is a simulation of a trading strategy used to evaluate how effective the strategy might have been if it was traded historically. Backtestesting is used by hedge funds and other researchers to test strategies before real capital is applied. Backtests are valuable because they enable quants to quickly test and reject trading strategy ideas. All too often, strategies look great in simulation but fail to live up to their promise in live trading. There is a number of reasons for these failures, some of which are beyond the control of a quant developer. But other […]
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TradeStation Power Tip!
A Simple Method To Access Two Timeframes
This is a powerful technique that can increase the profitability of your trading system. Download this simple free guide on how to use two timeframes within your strategy code.