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Setting date parameters
Some of the system tests require at least 40 or more bars of historical data. Is this accounted for when setting the date parameters in the system tester? How is this accounted for during the system test?
Let's say the buy signal is Close > 100 period simple average and my sell signal is the exact opposite. When I run my system tester and select my securities with 500 periods of data, I'm only really testing the system over 400 periods of data. This could be misleading if you compare to a system with a lesser requirement for historical data.
Here are a few report fields to really pay attention to:
# of winning trades
# of loosing Trades
Average Gain/loss
Make sure you look at these and not just the "Return" or the $ figure. Remember, there is no absolute answer. At some point you will have to use statistics. Always make sure you have enough data to satisfy your basic requirements but you have to make concessions at some point. You know how it works now, so you will have to decide how you want to use the system tester based on that info.
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