Backtesting is sooo confusing , anyone got a good guide to learn how to do one?

ok i found a site for historical forex data , now it looks like this

be980df84f07aa23dc7e757cf0040ff5.png


i have no idea at all , how to express those conditions into algorithms , this site doesnt have volume or open interest sadly , from the video i saw that only close price is neccesary to type a strategy , anyway how do i learn the algorithms?
 
Dude you sound lost. No trend line I've ever seen can just be drawn on close data. That's not the purpose.

You need to read some good books on TA I think, there u will learn the concepts you need to know. But yea you are lacking data as well.

Probably best to use a pen and paper dude. It's not that different if you think about it.
 
First off I doubt you'll find a good volume source for spot forex. Theirs no exchanges to record volume. If you did it be hard to know where they got the volume from.

Second you'd need to define what draws a trend line. That be your first code, which wouldn't be easy. Perhaps simply connect the lowest low value of past 20 days? Could be more complex to this.

I use Amibroker to backtest/ chart and I know from experience that trying to define something into a mathematical/ computer code formula is not always easy to define. Computers do exactly what you say.

So here's the question, what are you trying to backtest. What kind of data do you need. Are you doing individual tickers or are you interested in portfolio level backtesting?

Defining a trend line in Excel sounds like a nightmare for myself to comprehend.
 
well at least i start to get an idea about how it is supposed to be done , you first need total data on paper and then mathematical codes to translate your conditions and all your ideas can be translated into algorithms , sounds simple but learning these mathematical codes are not easy at all , i wonder why there isnt any software capable to do the algorithms on its own and you simply enter the conditions you want
 
Wach80 said:
well at least i start to get an idea about how it is supposed to be done , you first need total data on paper and then mathematical codes to translate your conditions and all your ideas can be translated into algorithms , sounds simple but learning these mathematical codes are not easy at all , i wonder why there isnt any software capable to do the algorithms on its own and you simply enter the conditions you want
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First you need data.
What data ? Depends what you look for.
Some only need EOD datas but you may need intraday.
Or anything else like Macro, Earnings, Microstructure related.
Once you know what you need, get the data, then translate into code.
You can run very simple strategy with EOD data on Excel.
Simple as IF yesterday close > yesterday open,
Then Close - Open which is to buy the day,
At the open and close at the EOD.
If you trade with daily candles,
You won't need intraday.
And excel will suffice.
 
Wach80 said:
well at least i start to get an idea about how it is supposed to be done , you first need total data on paper and then mathematical codes to translate your conditions and all your ideas can be translated into algorithms , sounds simple but learning these mathematical codes are not easy at all , i wonder why there isnt any software capable to do the algorithms on its own and you simply enter the conditions you want
More...

I've never tried it, but some say ninjatrader is easier??

If all else fails, freelancer.com
 
I dl amibroker , looks promising , it still requires coding , i also dont know how to make it scan forex data only , it has several tricks.
 
masterm1ne said:
Why so complicated..? I print charts out week after week, and review my trades and go over patterns with a pen and ruler.
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%%
Good word + good help MM;
i like to print a 10 year candle chart sometimes also. Crayons work well, also+ they dont bleed thru like so many high- liters...........................................
 
Wach80 said:
ok i found a site for historical forex data , now it looks like this

be980df84f07aa23dc7e757cf0040ff5.png


i have no idea at all , how to express those conditions into algorithms , this site doesnt have volume or open interest sadly , from the video i saw that only close price is neccesary to type a strategy , anyway how do i learn the algorithms?
More...

Hi,

Backtesting the daily FX data isn't good enough, especially, when you don't have volume data.
You need to backtest intraday data as well.

if-else statement will do in algo.
If you have a strong motivation then take some programming course as well as Finance research course.

Since you have just started trading, never trade with more than 0.01 lot and no more than one trade at one time otherwise you will quickly lose your fortune.

Keep trading and learn at a time.
I think it will take 2 years at least to get decent skills to trade.

All investment will take time
 
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