Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Introduction to Backtesting a Trading System using Amibroker

56 sec read

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();
Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Mini Certification Course on Algorithmic Trading Strategies

If you are new to Automated trading? This certification course will help you to kickstart your automated trading with your broker and get to...
Rajandran R
1 min read

HalfTrend – Amibroker AFL Code – Better than Supertrend

Marketcalls had published Supertrend with multiple variations from 2012 onwards. And this time a very popular ATR based strategy Halftrend which is considered a...
Rajandran R
3 min read

AllinOneAlerts – Amibroker Alerts Module for Amibroker Users

AllinOneAlerts is one of the most important and most requested modules to bring all sorts of alerts with no extra coding efforts. Now even...
Rajandran R
5 min read

5 Replies to “Introduction to Backtesting a Trading System using Amibroker”

  1. 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..,

  2. 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. 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!

Leave a Reply

Get Notifications, Alerts on Market Updates, Trading Tools, Automation & More