Backtesting is a simple process that helps a trader to evaluate his trading ideas and provides information about how good the trading system performs on the given historical dataset. It talks a lot about the behavior of the trading system, the risk involved in trading a particular trading system, and a lot about trading system performance. Here is a video tutorial with step by step guide on how to perform simple backtesting using Amibroker.
Simple EMA Crossover Trading System
//Marketcalls Backtesting Tutorial
_SECTION_BEGIN("EMA Crossover Trading System");
SetChartOptions(0,chartShowArrows|chartShowDates);
//Plot CandleSticks
Plot( C, "Price", ParamColor( "Color", colorDefault ), ParamStyle( "Style", styleCandle, maskPrice ) );
//Compute EMA 20 and EMA50
EMA20 = EMA(C,20);
EMA50 = EMA(C,50);
//Plot the EMA lines
Plot(EMA20,"EMA20",colorGreen,styleLine); //Shorter Length EMA
Plot(EMA50,"EMA50",colorblue,styleLine); //Longer Length EMA
//Logical Buy and Sell Rules
Buy = Cross(EMA20,EMA50); //Positive Crossover
sell = Cross(EMA50,EMA20); //Negative Crossover
//Short AND Cover for a system which wants to go short
//Plot Buy and Sell Arrows
/* Plot Buy and Sell Signal Arrows */
PlotShapes(IIf(Buy, shapeSquare, shapeNone),colorGreen, 0, L, Offset=-40);
PlotShapes(IIf(Buy, shapeSquare, shapeNone),colorLime, 0,L, Offset=-50);
PlotShapes(IIf(Buy, shapeUpArrow, shapeNone),colorWhite, 0,L, Offset=-45);
PlotShapes(IIf(Sell, shapeSquare, shapeNone),colorRed, 0, H, Offset=40);
PlotShapes(IIf(Sell, shapeSquare, shapeNone),colorOrange, 0,H, Offset=50);
PlotShapes(IIf(Sell, shapeDownArrow, shapeNone),colorWhite, 0,H, Offset=-45);
//At what Price to Buy
BuyPrice = Close;
SellPrice = Close;
//Money Management - How much to buy
SetPositionSize( 100000, spsValue ); // 1 Lakh in each trade
//PositionSize = 100000;
//Trade Delays
SetTradeDelays(0,0,0,0);
_SECTION_END();
Sir, whether there is a similar indicator as mt4 Fiji trend indicator , in amibroker Afl code, where we can curve fit / modify the time frame in the indicator ?, If any kindly specify..,
There are somany system avilble on your site and am confused.am new in this field and trding in bullionfutures carryforwrd.
Is it possible totrade witout stoploss?
Plese advise suitble sytem/softwre for me
1)Learn how to backtest
2)Take the system and backtest with your desired set of trading instruments
3)Understand the risk/nature of trading system
4)If suits your risk profile adapt it. Else move on to next one!
Hi Rajandran
is it possible to backtest data for intrday frame only
Yes possible here is a sample code https://www.marketcalls.in/amibroker/super-trend-intraday-afl-code-for-amibroker.html