This is the TimeToTrade help wiki. Use the TimeToTrade Trigger Trading Technology™ to execute your trades when Price, Candle Stick, Trend Line, Volume and Technical Analysis chart conditions are met - no coding required. Trade directly in the world’s global markets. Backtest your Trading Strategies. Calculate your UK HMRC Capital Gains Tax liabilities. Manage your Investment Club.
Back Test Trading Strategies
The TimeToTrade Back Testing feature can be used to test alert based trading strategies on historical price data.
For help on how to create alert based trading strategies, please watch the interactive help tutorials, by clicking on the blue help icon in the Chart Tools 'Alert Builder' section:
To backtest a trading strategy you will need to set up a simulated trading account. Click here for help on how to do this.
In the following example, a simple alert based trading strategy will be tested. The strategy will test buying each time the 5 minute RSI falls below 30.
To begin, create an alert based trade as per the following example:
In this example a trade will be executed when the RSI falls below 30 using a 5-minute candle interval if there is no existing position i.e. if no position, execute trade.
If there is no open position when the RSI falls below 30, a simulated trade will be executed by buying a 100k Forex lot. Take Profit and Stop Loss orders will also be created. In this example the alert based trade has been set up to Take Profit if the price rises by 0.0010 from the opening trade price, and a Stop Loss if the price falls by 0.0020 from the opening trade price.
After creating the alert and the related trade, click on the 'Pause' button. Now open the 'Back Test' widget:
To test the newly created 'Long Entry' trading strategy, click on the red circle beside the alert:
The strategy that is being tested can be named, the date range adjusted, commission, slippage and taxation values set. Note that slippage is used to reduce the profit by increasing or decreasing the trade execution prices.
When the backtest parameters have been set, click on the green button that says: 'Back Test Selected Alerts'. A summary of the backtest results will be displayed:
To analyze the backtest results, click on the 'View Detailed Backtest results' button and that will open up a tearaway chart and display the trade events on the chart as per the following screen shots.
The backtest results tab in the tearaway will display the backtest trades, related win loss analysis and performance analysis. The blue graph in the top right corner represents the profit over time:
The backtest analysis tab on the tearaway provides a detailed analysis of the trades and related take profit and stop losses. The first bar graph shows the profit per trade with information on the frequency of the winning and losing trades and an analysis of the average time it took for winning and losing trades. The second bar chart represents the maximum profit that could have been achieved for each trade. In addition it calculates the average high and the standard deviation of those highs. The standard deviation means that approximately 95% of trades are within the quoted value. The third bar represent the same information but this time looking at the stop loss values.
The opening and closing trades will be displayed on the chart, with 'up' arrows used to identify 'buying' and 'down' arrows representing 'selling' trades. The grey arrows represent opening trades; green arrows are successful closing trades; blue arrows arrows are loss making trades.
The following data sets are currently available for back-testing:
- 1 week of 1 minute up to 1 hour intervals
- 3 months of 1 hour up to 1 day intervals
- up to 10 years of 1 day plus intervals
The maximum number of data points for minute and hourly data sets varies depending on the number of hours a market is open during the day. For example the Forex markets are open for 24 hours a day (except Friday) therefore there are 1440 one minute interval candles per day; the London Stock Exchange stock is open from 8am to 4.30pm therefore only has 510 one minute interval candles to backtest against.
Please note that back testing is only available on the Live Trading Account. Click here to upgrade your account to use this feature.
Back Test Forum Discussions
- Back test and Optimisation of the Rule #1 Trading Strategy
- MACD Delta Price Divergence Alerts and Back Test
- Moving Average MACD Strategy & Back Test]
It has never been easier to execute your trading strategy. Our Trigger Trading Technology ® means you can now automatically execute your trades directly in the world’s global markets.
You need never miss a trading opportunity again!
Do you want to:
- buy when your technical analysis chart conditions are met? Really buy, not just get an email or sms alert?
- or sell when a support trend line is broken?
- or back-test your strategy going back as far as 30 years?
TimeToTrade's Trigger Trading Technology™ is truly game changing. It gives you a trading advantage. The power to take your trading to a new level.
Open a FREE TimeToTrade account today to:
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- Back Test Trading Strategies with up to 30 years of historical data - learn more
- Create Simulated Trading Accounts to test your Trigger Trading™ Strategies - learn more
- Real time Forex, UK, European and US stock market data - learn more
- 170+ Technical Analysis and Candlestick Pattern Indicators - learn more
- All the tools you need to set up and run a successful investment club - learn more
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- Create Trading Competitions for you and your friends - learn more
- Apply for a trading account today to get the Live Account Features - apply now
Apply now to try our superb platform and get your trading advantage.
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