Start New Backtest SessionTo start a new backtest session, please go to Marketscope, and then click on "Backtest Strategy" command in "Alerts and Trading Automation" menu.
Please note that the command is also availble when you are logged out. To be able to backtest a strategy in this case, you should have the market data loaded and stored on your computer. You have the data if you backtested strategies earlier since the data are saved automatically. Note that only previously saved data (per symbol and time interval) can be used when you are logged out.
Choosing StrategyThe backtester window will be promptly opened and a new backtester session wizard is started. On the first page you can choose a strategy or an alert to backtest. You can use a Find field above the strategy list to filter the strategies. Entry any part of the strategy name, identifier or description into the filter and only the strategy (alert) which contains the entered text will be shown.
When a strategy (an alert) is selected, the next button becomes active.
Let's choose the Moving Average Advisor, the strategy which is probably most cited in trading books. (To read how the Moving Average Advisor works please read
Simple Moving Average (MVA, SMA) article).
Configuring AccountAt the next step you can configure the account for backtesting. You can choose:
- The account currency. The Gross Profit Loss of the trades, Margins, Equity and Balance will be calculated in chosen currency. By default, the currency of the first account of the current trading session is chosen.
- The initial balance on the account expressed in the account currency. By default, the typical demo account size (50,000) is chosen.
- The lot size for the account. Three options are available:
o A micro account (1000 lot size)
o A 10K (mini) account (10,000 lot size)
o A 100K (standard) account (100,000 lot size)
By default, the lot size of the first account of the current trading session is chosen. - The set of the trading rules applied on the account. Three options are available:
o FIFO (US account). In this case close orders (market close, stop and limit orders) are forbidden. The opposite open (or entry) order closes the the oldest existing positions first. Hedging (an ability to keep opposite position in the same time) is forbidden.
o Non FIFO account without hedging. In this case, the close orders are allowed, the positions can be closed in any order. Hedging is forbidden.
o Non FIFO account with hedging. In this case, the close orders are allowed, the positions can be closed in any order. Hedging is allowed.
By default, the trading rules of the first account of the current trading session are chosen.
Fill the options as you wish or leave the default values and click Next.
Configuring Market Data At the next step you can configure the data and time range for backtesting and the instruments to test the chosen strategy (alert) for.
Use the date/time selectors to specify the date ranges. The backtesting always starts and ends at the trading day border (17:00 New York Time) of chosen dates.
You can also choose one or more instruments to back test. Choosing of the multiple instruments may be useful for testing strategies developed for Indicore 2.0 which allows multi-instrument strategies.
You can filter the instrument list using the Find field above the instrument list. Enter any part of the instrument name there and only the instruments which contains the entered text will be shown.
Loading Market Data The backtester uses the quote manager server to load the 1-minute quote data for the chosen instrument in chosen period. The quote manager is much faster than the chart server and loading of the whole year of the 1-minute data for an instrument (approx 300K candles) usually takes less than 30 seconds.
You can load the data immediately or choose to load the data before starting the backtester. Let's load the data now.
Click next and wait a bit while the data is loaded:
Last edited by Anonymous on Wed Dec 07, 2011 7:55 am, edited 2 times in total.
Reason: Updated for the new version of Backtester