Hey everyone,
This will serve as part four in the series “Becoming a Better System Trader”. If you missed the first three posts here they are
- http://trademyalgos.com/2015/09/the-difference-between-a-ferrari-and-a-mercedes-benz/
- http://trademyalgos.com/2015/10/why-not-to-use-stop-losses-becoming-a-better-system-trader-part-2/
- http://trademyalgos.com/2015/10/why-sequential-trade-system-statistics-like-drawdown-are-meaningless-becoming-a-better-system-trader-part-3/
This installment is much simpler. I just wanted to share a quick video explaining the most basic tool in a quant trader or system developer’s toolbox: the Backtest.
I also went over a rudimentary example finding an optimal parameter value as well as some tips regarding how to select an objective function to determine “optimal”.
Stay tuned for the follow up video about the next testing phase: the Walk-Forward test
Enjoy the upcoming weekend,
David – click my name for a quick About Me post.
TradeMyAlgos.com
P.S. Don’t forget to take one of our free trials while they are still available. You can sign up here: http://trademyalgos.com/active-alerts/FreeTrialSignUp or here: http://trademyalgos.com/ProElite/FreeTrialSignUp
