Recent content by StockTrader1985

Well I'm going off reported financial information through Bloomberg. I guess the data could be flawed well the way I do it is I assume all my stocks are equally valued. I don't know what the technical term for that is, but i choose 100 stocks that fit my criteria based all stocks' previous...

sarcasm? :confused: otherwise, thank you

definetly don't have surviorship bias. when selecting stocks for each year in the past, I go through the list of stocks available at that point in time to make the decision, along with their financial data

1) Large cap, in fact one requirement is that the company's market cap must be at least a billion. I ran the system over small cap, and although I beat the s&p500, the results weren't as great as the large-cap test. However, since the two tests are mutually exclusive, I think that should add...

Thanks for the response 1) no, it does not include slippage and comissions. However, I've always been under the impression that slippage doesn't make a huge deal when backtesting equities. I'm assuming that I'm purchasing 100 stocks at the beginning of every year. What percent of the reported...

yes, but I'm not sure how to detect, objectively, whether I am form fitting or not

OK forget I asked that second question Please help me with the first question if you can. Any of you math dudes out there, are there any statistical tests that can be applied to verify the legitimacy of a backtest?

alright, then ignore my second question, just answer the first if you can (help with statistical models that can verify the legitimacy of a backtest)

what's that supposed to mean?

Hey guys, I usually stick to trading currencies, but a few days ago I decided to run a backtest on a system that's based on value investing. Using objective criteria over the first 100 stocks that fit the criteria, I ran the backtest over every year from 1998 through 2006, annually. Although...