“I have two basic rules about winning in trading as well as in life: 1. If you don’t bet, you can’t win. 2. If you lose all your chips, you can’t bet.” – Larry Hite
We as traders need to make sure that we don’t loose our Capital (Chips) so we can first survive and then thrive in Capital Markets.
When I started out, I used all the possible indicators and theories which helped me to make better decisions but for becoming systematic trader I needed quantified rules and systems. For systematic strategies we need to backtest these rules over large sum of data and see if the system is profitable or not. If its profitable, then there is a high chance that it will continue to do well in the future. If historically its loss making, then there is very less chance that it will be profitable in future.
What are the challenges faced by Systematic Traders today for Backtesting?
1. Learning a new coding language like Amibroker/Python/Java to backtest an idea.
2. Availability of clean set of Data to backtest the strategies.
3. Evaluation of backtesting report in terms of profitability of the system.
4. Backtesting option strategies like Option Spreads, Straddle, Strangles, etc based on Technical Indicators.
What are we offering?
We, at MarketScanner have a team of passionate traders who have a knack of backtesting and creating new systems almost every week.
We would like to use this team of passionate traders for helping you to backtest any of your idea or strategy in without worrying about all the above mentioned challenges. This will be a one-on-one service to you for backtesting your strategies.
The only thing you have to do is fill up the google form and get connected to us with the rules of your strategy and then leave everything to us.
Frequently Asked Questions
Q. Which coding language do you use to backtest ideas ?
A. We use Amibroker (AFL) and Python
Q. What instrument can be covered as part of Backtesting?
A. NSE Index, NSE Futures & Options and NSE Stocks, NSE USDINR Future & Options (if you have any other requirements, you can include it while connecting to us)
Q. What is risk the of disclosure of my strategies?
A. It’s highly confidential and we do not share any of our client strategies or results with anyone except you.
Q. What is the time required to finish the project?
A. Usually a simple backtesting would not take more than 5 days. If its complicated then we discuss it with you and set the time limit.
Q. What assistance can I expect from Team MarketScanner?
A. We first setup a consultation call with clients and understand his/her requirements and if required, we guide clients some necessary adjustments based on our experience.