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Absolutely. Stock universe is not huge. Stocks are fewer in this part of the world.

Backtested. Last twenty years of data. I am not trading markets in the US. The problem with becoming a billionaire is that, if I get 12 consecutive losses, I would blow my account at some point in time. I tested on around 2500 trades.

The average win/loss ratio is around 1:1. The strategy is fine the way it is, it is just that losses come in clusters. I am also running a trend-following system, so I don't mind if I get lesser trades in this system so that losses don't come in clusters.

I don't have profit targets or stop losses.

We can't short stocks where I trade. Therefore, it is a long-only strategy. Yes, my method doesn't adjust for increased volatility. Any thoughts how I can do this?

Good point. What would be the best measure to assess volatility in the context of a sustained downtrend?

I am in the process of making a mean-reversion trading strategy. The current winning percentage I am getting is 67. However, the strategy tends to incur many, many consecutive losses in periods of sustained downtrend. For instance, during the 2008 financial crisis, it would probably have 20-30...

I don't have access to options markets as there are no options where I live. Besides that, brokers even don't know where to get historical data for stock futures. I have tried every place, I don't know where to get it from...I trade in PSX (Pakistan Stock Exchange).

We can't short stocks where I live. We can only short stock futures. Therefore, I was wondering, if I were to analyze past price action, would I use the stock's historical data or the historical data specifically of stock futures? I contacted brokers, but they don't know where I can get...

Thanks for your comment. In a general declining market, the strategy will fail. This is because it is a long-only strategy. We cannot short stocks in the country I am trading. In stock futures, I can short here. However, Futures are for a very limited number of stocks. And, it is impossible to...

Note that I am not optimizing my strategy over all my stock universe. I just look at a couple of stocks, see what feels correct, and then apply that strategy on all the stocks. I don't test and retest on all the stocks.

I tested how my strategy performed in the past two years separately. I got similar results to what I was getting for the last 10 years.

I test strategies by guessing, say, the optimum values for the RSI. As an example, I look at three stock's 10-year data, and I see what parameters might work for those three stocks best. Then I apply the same method to, say, a 100 stocks. If my results are good, I keep the strategy, otherwise I...

Hello, Would anyone know where I can get historical data for stock futures for the Pakistani Stock Exchange? I will highly appreciate it if someone can answer this.

I want to buy the stock when its price is two standard deviations above the 60-day MA. Sell when the price hits the 60-day Moving Average. Stop Loss at the ATR. If anyone can help me back test this using Excel, I will highly appreciate it.

Investing.com. I am trading markets outside the US. That is the only source I have currently.

Would anyone have a sample Excel file with a strategy with code for backtest?