backtest vs reality buy or sell at open?

[losemind]

my backtest is based on buying or selling at open... how do i make the backtest as realistic as possible?

 

[intradaybill]

Backtests are not realistic by definition.

 

[rmorse]

Quote from losemind:

my backtest is based on buying or selling at open... how do i make the backtest as realistic as possible?

Unless you believe your volume will change the opening, I don't see why the opening price would not be accurate.

 

[Don Bright]

Search TASC magazine for their 10 year back test, done without any "help" from futures prices etc. Might be a place to start.


Don

 

[losemind]

Quote from Don Bright:

Search TASC magazine for their 10 year back test, done without any "help" from futures prices etc. Might be a place to start.


Don

Thanks Don. But I want to focus on stocks. Futures are traded more or less 24 hours, which is different.

 

[Samsara]

Quote from losemind:

Thanks Don. But I want to focus on stocks. Futures are traded more or less 24 hours, which is different.

I think you misunderstood what he was saying.

 

[Don Bright]

Quote from losemind:

Thanks Don. But I want to focus on stocks. Futures are traded more or less 24 hours, which is different.

We've traded the opening only on stocks fro 30 years... we enhance our success rate by adjusting our bids and offers to reflect the current market conditions via futures, we don't actually trade the futures.

Here is an older article where I describe some basics:

http://www.stocktrading.com/Transition2008.htm

Don