testing Trading ideas?

[romanmar]

What's the most effective approach to testing trading ideas?

I could write a program that will test certain scenarios, and backtest against data or ticking market data. But that is just too time consuming, and I want to leave that for something that I have a high confidence in. My trading involves only stocks and options.

Any tricks or tips, techniques, low-cost services?

Anyone used services like fiverr.com to compile research on the cheap, what advice can you give on that?
What's the most effective way to gather data to test a strategy?

Can someone share their experiences testing their strategies, explain how they figured out why a strategy failed? Potential pitfalls?
Any tools, tips to help in gathering data?


Thanks in Advance.

 

[NVP]

What's the most effective approach to testing trading ideas?

I could write a program that will test certain scenarios, and backtest against data or ticking market data. But that is just too time consuming, and I want to leave that for something that I have a high confidence in. My trading involves only stocks and options.

Any tricks or tips, techniques, low-cost services?

Anyone used services like fiverr.com to compile research on the cheap, what advice can you give on that?
What's the most effective way to gather data to test a strategy?

Can someone share their experiences testing their strategies, explain how they figured out why a strategy failed? Potential pitfalls?
Any tools, tips to help in gathering data?


Thanks in Advance.

so you want something instead that is fast, cheap and will tell you what system will make you lots of money ?

join the queue

N

 

[romanmar]

Do you know how unhelpful close-minded and useless replies like yours are? It makes everyone else dismiss a question, or share with some constructive thoughts.

Please don't answer things you have little experience in! I build trading and valuations systems for a living, and there always "more than one way to skin a cat"!

 

[malaguti]

Please don't answer things you have little experience in! I build trading and valuations systems for a living, and there always "more than one way to skin a cat"!

and there you are looking for tricks, tips, techniques and low cost services..and you say you build trading systems for a living.
you clearly dont make very much for a living

 

[romanmar]

There is a difference between trading and building trading systems, learn to think kakaguti. Anyway it seems that I'm wasting my time here.

 

[malaguti]

There is a difference between trading and building trading systems, learn to think kakaguti. Anyway it seems that I'm wasting my time here.

if you build a trading system, the trading is the execution of your system
if you are trying to tell me you build systems without ever executing them, you could never know whether what you built had met the objectives
learn a different business if I were you

 

[romanmar]

You obviously don't know what you are talking about! If you build Etrade's or any other trading system, it just supports putting in trades, and routing them. It does not involve decision, that is HFT or other automated trading systems.

 

[malaguti]

You obviously don't know what you are talking about! If you build Etrade's or any other trading system, it just supports putting in trades, and routing them. It does not involve decision, that is HFT or other automated trading systems.

so you build trading platforms, a bit different to a trading system wouldnt you say?
Now if you had just said, I build trading platforms, i wouldnt be wasting my time talking to a numptie. take a hike ramondo

 

[Shakone]

What's the most effective approach to testing trading ideas?

To backtest them (if possible), in and out of sample, then forward test them.

I could write a program that will test certain scenarios, and backtest against data or ticking market data. But that is just too time consuming, and I want to leave that for something that I have a high confidence in. My trading involves only stocks and options.

Any tricks or tips, techniques, low-cost services?

Only one. Spend the time doing it.

Anyone used services like fiverr.com to compile research on the cheap, what advice can you give on that?
What's the most effective way to gather data to test a strategy?

No.

Can someone share their experiences testing their strategies, explain how they figured out why a strategy failed? Potential pitfalls?
Any tools, tips to help in gathering data?

Thanks in Advance.[/QUOTE]

They fail because they lost money in aggregate. Pitfalls can be in not adequately considering slippage, commissions, the human element, unexpected events, and others.

 

[Paulds11]

I think this is a critical question asked by the thread starter. The problem is twofold. 1. You have to decide where your focus is. Ie fundamental technical biases because that will tell you how to research. 2. If technical, then you need a package that will allow testing on historical data e.g you need advanced studies as offered by Tradestations easy language and paint bar tools. Complicating this is that if you like fundamentals you need to research dates for events so you reference market behaviour historically( not easy). Therein lies your problem and why most retail readers lean towards technicals.