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Questions tagged [backtesting]

Backtesting is the process of applying a trading strategy or analytical method to historical data to see how accurately the strategy or method would have predicted actual results. It offers analysts, traders, and investors a way to evaluate and optimize their trading strategies and analytical models before implementing them.

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Optimisation of a Trading Strategy (Walk Forward Analysis)

To the pro traders: What do you do when the past two years of a WFA (10-15 year period) had an increasing loss (2017 = -4%, 2018 = -8%) while the other years were profitable? Do you modify the ...
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Finding the most profitable strategy in hindsight

Is it possible to calculate (in a reasonable amount of time) the maximum profit, and strategy you could have used for history data? So for example buy day 1, sell day 10, buy again day 15, sell day ...
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Are dividends on YahooFinance adjusted for splits?

Here is an example from YahooFinance of dividends paid over time. I assume these numbers are USD - is this correct? My other question is if these dividends are adjusted for splits? In this example ...
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Backtesting for Vanguard Mutual Fund investments

I'm new to this so my apologies if this is out of place or not a "correct" use of backtesting. Is there a free service (or python package) for backtesting investment strategies for Vanguard mutual ...
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Backtesting daytrading strategy, how to handle the spread?

I am currently developing a daytrading application which based on rules and algorithms buys or sells stocks, which right now might buy/sell a stock in the magnitude of 100 per day. I am trying to ...
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Why doesn't Yahoo Finance Adjusted Close value match between its API and web interface?

I see a lot of differences between the adjusted close price in the Yahoo finance web interface and the adjusted close price returned from their API. Take Apple (AAPL) as an example. If you look up ...
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Are stock screeners with backtesting a real possibility for a trading strategy?

Some stock screeners offer backtesting. They may sell everything and buying 10 top stocks passing their criteria once a month. There can be many different rule sets, all with stellar returns over ...
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Incorporating real-world parameters into simulated(paper) trading

A bit expanding the question asked here, I want to try and test a strategy using a simulated(paper) trading. As a first step, I have tried to find any brokers who provide a convenient simulated ...
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Should I use regular or adjusted close for backtesting?

In an attempt run few backtesting tasks, I have obtained some historical data. I noticed that there are two closing prices available, regular close and adjusted close. After doing some reading, I ...