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Does every aspect of a strategy I wish to back test need to be in the same formula ?

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  • Does every aspect of a strategy I wish to back test need to be in the same formula ?

    Or is there a way to apply multiple formulas to a chart and back test all of them together (presuming they do not contradict one another) ? For example , can I test a moving-average crossover system and then also test various forms of exits separately without needing to edit the formula again and again ?

  • #2
    Yes...

    This is somewhat simple....

    If you are going to test a strategy (completely), then you should include all the logic and trading actions into that EFS necessary to accurately portray your strategy.

    In other words, you can build the strategy to any "capable level" you wish. But to answer your question, to accurately backtest a strategy, you should include all the logic required to complete your strategy.
    Brad Matheny
    eSignal Solution Provider since 2000

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