BACK TESTING FOR STOCKS

POSTED BY sunil ON December 7, 2012 11:02 pm COMMENTS (7)

Dear All,

I am interested in knowing how do we do Back Testing for the strategies we develop in trading or investment…. I mean if i want to trade on only EMA’s and wanted to Back Test and find the success of it… how to do it…

Any one knows any software (open source in INDIA) to back test wat ever scenarios (Not Exotic though) we are interested in.

Thanks in Advance,

Sunil Ramidi.

7 replies on this article “BACK TESTING FOR STOCKS”

  1. 3sharad says:

    Manish -> No free source of data… you need to subscribe to one.

    Sunil -> Let me know if you need guidance on setting up the excel back-testing.

  2. sunil says:

    Dear Manish,

    I have been developingthis Fundamental Analysis screeners alongside with Technical Analysis Screeners.

    On the Technical Analysis front i am sure i almost reached the end of the list to be finalized.
    However, from Fundamental analysis front, i am still not aware of what alll parameters are the best to analyze any company and how to foresee any company’s growth.

    Can you let me know if you have any idea on this information, or if i can get any help from any of your learned friend’s circle.

  3. sunil says:

    Thanks a lot Sharad, i have just seen the replies….
    Was busy in a project Audit.

    I liked the volume of data (though haven’t gone through completely)… Will do that today and will get back to you.
    My strategies are moderately complicated and i feel i can get them in an Excel.. only thing being i need someone who is welll versed with Excel so that i can take their help in getting my strategies working…

    I shall come back to you soon.

  4. TheZionView says:

    manish you can get PE PB values in nse for many indices there
    look jhere
    http://www.nseindia.com/products/content/equities/indices/historical_pepb.htm#

  5. Sharad

    I read that article of yours and loved it , I am a data cruching person myself and can instantly think a lot of ideas .. can you share if there is any source from where we can get that kind of data like

    BSE 200 stocks price and their PE ration for each month for last X year ?

  6. 3sharad says:

    Hi Sunil,

    If the strategy is simple and you have data you can use excel. You can ask someone for excel help and you should be done.

    Typically you should be fine for generic investment strategies using excel. I wrote a relevant blog at the following link:
    http://valuefy.wordpress.com/2012/10/25/diy-an-excel-quant-strategy-that-multiples-money-40-times/

    However, as the data size grows and the complexity of rules grow you might have to look for a software.

    If you can explain the back-testing that you are looking at in a some detail, I might be of help.

    Regards,
    Sharad

    http://www.thefundoo.com
    Making the right financial choices

  7. TheZionView says:

    I doubt we have any open source system. There are some high speed trading algo run by some companies but nothing that is well known.

    You can develop one and you can find some in US market which can be modified to our scenario.but none open source

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