Stock Backtest - Powerful Tool for Building and Backtesting Stock Trading Strategy

Backtesting lets you examine your stock analysis method on historical data to determine how well it would have worked in the past. The Backtesting feature will help you to understand if your analysis methods are viable and potentially successful. Learn More..


	Strategy Name **

	Type of Positions **

Position Opening

Criteria for Opening a Position **

Select with the criteria builder

Set by a formula expression

Extract from a stock screen

Prioritize Stocks by [?]

Order Execution Model **

Limit Market Entry to

Position Closing

Criteria for Closing a Position

[clear]

Select with the criteria builder
Set by a formula expression
Extract from a stock screen

Order Execution Model

Limit Market Exit to

Position Maintenance


	Unit

	Stop Loss,

	Trailing Stop Loss,

	Take Profit,

	Close position after	trading days/bars

	Close position at the end of

Backtest Parameters

Initial Capital, $ **

Capital at Risk, per Trade **

Portfolio Max Size **

Commission, per Trade **

Avg Bid-Ask Spread, % **

Backtesting Time Period **

Other:

Benchmark

Comply with the wash-sale rule

Assign grouping icon

[clear] [?]

** - mandatory fields

How does backtesting work?
When you create a stock screening strategy that contains all necessary criteria and the selected historical year for comparison, backtesting applies this information and simulates trades for every matched stock based on each day of the selected year. Any matching stocks will be put into your virtual portfolio and any that are not will be ignored. Even if some stocks, however, do match the criteria, they will still be ignored if there are no vacant positions in the portfolio. Traders typically do not add a large number of stocks to their portfolio, because its purpose is to control risks (20-30 stocks generally suffice). Portfolio size can be specified along with other parameters during strategy creation.

Also, if some stocks in the virtual portfolio conform to exit criteria, stop loss, or take profit condition, the corresponding position will be closed. Users can specify the criteria for closing positions. In this case, stocks that were purchased earlier are sold and will be reflected in simulated trades. The position is then closed which allows for vacancies in the portfolio. The trading simulator takes several seconds to perform the analysis. Testing results and a list of executed virtual trades are displayed on the backtesting report page.