Rank: Newbie
Groups: Registered, Registered Users Joined: 4/8/2007(UTC) Posts: 3
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Is there any way to back test an indicator in Metastock through the system tester or some other method? Thanks!
Ralph
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Rank: Advanced Member
Groups: Registered, Registered Users Joined: 1/19/2005(UTC) Posts: 1,065 Location: Koh Pha-Ngan, Earth
Was thanked: 2 time(s) in 2 post(s)
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You can backtest entry & exit signals based on conditions (e.g. C>Mov(C,21,S), but you must first define your methodology for these signals.
And even then, comparing backtest results with markedly different risk (drawdown) profiles is a difficult task.
The risk-normalization of any backtest results is essential. More on this issue here:
Trading System Evaluation/Development Tools
Part 2
jose '-)
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