How can I choose the best software for back testing?

Reverse test software is designed to simulate how well a specific business strategy would work in a particular previous period. The aim is to provide some insight into how well the same strategy would work in the future, although it can only be a forecast. The keys to select the right refund software software include avoiding a postdictory error, finding options for customizing and avoiding software created by the same people selling the trading system. If it does not, it creates a statistical problem known as a postdictive mistake, which means that the analysis does not reflect, as the trader actually decides to perform a strategy. One example would be if the software worked only with the final prices; This is not a realistic situation, because at a time when the price was available for Mortgage Trader, which decided, the market would close!

The most accurate way to avoid a postdictive error is to perform back testing completely manually. Because it usually does notIt is virtually efficient, it is important to use software that allows you to customize as much as possible. In general, the more automated and rigid, the more likely it is to include a postdictive mistake.

6 For example, a trader can plan a strategy that includes the sale of any stock that has lost 35% of its value. A good application will be able to quickly show what the difference would be made if the trader sold any share that lost 50% of its value instead. As well as testing whether the basics of strategy appear to be a sound, a total adaptation facilitates testing a strategy against human limitation. While the trader may believe that a 35% decline is an "objectively" best point in which it is to be sold, it can realize that if it has done the real strategy, it would be tempted to let the stock drop further in the hope of recovery, simply because it can be difficult to admit PObrážka.

merchants should be particularly careful about any back test software that is produced by a company that also sells advice to which the trading system can be used for. This is partly because such companies will be tempted to use reverse settings, which are designed especially so that their system shows as well. But even if companies do not act as cynically, it may happen that restrictions on back testing software have influenced their selection of the recommended business strategy.