Software for Technical Analysis

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Hi, are you just starting out with trading using technical analysis? I've been actively trading on the NYSE stock exchange for many years now. When I first started, I wanted to ensure I was choosing the best software there was out there. After some research, I found that alot of people were recommending Amibroker. So I purchased a copy for myself. I've been using Amibroker successfully since then.

If you search through forums, and blogs, you'll find that many people are still recommending Amibroker as their preferred technical analysis software. Today, I've decided to write an article recommending Amibroker as well. Please note that I'm not associated with the company in any way. I am not getting paid to recommend their software. In my opinion, it is honestly a great software package. If you don't believe me, simply search for reviews on it on your search engine, and you'll find many others share the same view.

Why is amibroker so great? Because its affordable, value for money, and it works. Because so many people use it, there's loads of help and tutorials out there on how to use the software. You simply need to ask, and someone will help use the software. You don't need to pay thousands of dollars for software that is so complex you don't know how to use it. I've come across many people who have attended sales seminars, only to be sucked into their glamorous sales pitches. After buying their software for thousands of dollars, they find the software is so complex they can't use it. They seek help, only to find they are given a huge, and complex maual.

With amibroker, its used by everyday traders like yourself. They speak in your language, not the high level complex language of manuals. I recommend you check it out for yourself.


If you do decide to use Amibroker as your technical analysis software, you can get historical data, and use it to test out the application.

Best of luck with your future trades.

Historical Stock Prices

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Historical Stock Prices refers to the open, high, low, close, and volume details of stocks. This information is used in technical analysis software programs to understand, and predict the behaviour of stocks in the future.

This information is available for free from yahoo finance. However, the files downloaded need to be manually amended before they can be imported into the software.

Most programs accept historical stock data in metastock format:

Symbol, Date (yyyymmdd), Open, High, Low, Close, Volume
yyyy = year. mm = month. dd = day
The files from yahoo are in the form:
Date (yyyy-mm-dd),Open,High,Low,Close,Volume,Adj Close
Downloading the historical stock data from yahoo manually is tedious, and can take a long time. There's a spreadsheet that will download the data for you automatically, and put it into metastock format: historical stock prices

NYSE historical data downloader

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Hi there, fellow stock traders. I assume you're reading this article because you're looking for NYSE historical data.

Before I go into the details of where to get the data, let me explain some facts about the NYSE that you may or may not know about. The NYSE, of course, stands for the New York Stock Exchange. Its one of the biggest stock exchanges in the world, and resides in America. Being one of the biggest stock exchanges has its benefits. Its highly liquid, with thousands of stocks. Whether you're looking for large companies with with stocks that fluctuate frequently, or penny stocks that hardly move at all. Or even medium sized companies that are still growing, the NYSE stock exchange can fulfill those requirements.

You can day trade, swing trade, or choose invest long term in the stocks. Day trading normally involves opening and closing a trade within the business day. Swing traders have trades that can be open from one day to a few days. Long term traders, are mostly known as investors as they can stay in a trade for weeks, or even months long.

There are two main types of stock trading analysis methods: Fundamental and technical analysis. Fundamental analysis looks at the stock's value in the market. Technical analysis looks at a stock's price movements over time, and makes predictions based on previous stock behaviour.

Historical data is generally used for technical analysis, as it is normally fed into software programs. Some basic programming knowledge is then required to write up a script to go through the historical data and generate buy and sell signals according to your trading rules. For example, the simplest types of buy and sell signals could be generated from the crossing over of the 100 day EMAs, and 30 EMAs. Remember, sometimes its not the most complex trading systems that are the most successful. Trading involves some strategy, but mostly involves money management. The simpliest of trading strategies can be successful if combined with sound money management techniques.

The historical data can be downloaded free using the spreadsheet provided at NYSE historical data. Good luck.

Introduction to stock trading - Technical Analysis

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There are two methods of analysing securities to make investment decisions: fundamental and technical analysis. Fundamental analysis involves analysing the characteristics of a company. This information is used to estimate the company's value. Technical analysis approaches the subject in a totally different manner. It does not take into account the value of a company. Technical analysts are only interested in the price movements in the market.There are many fancy and sophisticated tools technical analysts use. The underlying factor in all these tools is the study of supply and demand in a market in an attempt to determine what direction, or trend, will continue in the future. In simple words, technical analysis attempts to understand the emotions of the other players in the market. When you understand the benefits and limitations of technical analysis, you can use it to your advantage to become a better trader or investor.The two main pieces of data technical analysts use most when looking at a stock is its last price and volume. With this information graphed over a length of time, charts are formed, and patterns can be identified to suggest future activity.Just as there are many investment styles in fundamental analysis, there are also many different types of technical analysis tools and techniques. Some people rely on chart patterns. Others use technical indicators and oscillators. Most people use a combination of the two. Both versions exclusively look at the historical price and volume of data. Unlike fundamental analysis, technical analysts don't care if the stock is undervalued, or overbought. The only thing of importance to the technical analyst is the historical stock Prices. This information can help predict the security's future movement.

There are three basic assumptions made when you use technical analysis to analyse charts:
- The market discounts everything
- Prices move in trends
- History tends to repeat itself.Trading Stock System is A Stock Market trading teaching video Course. The videos are grouped into several 'Modules', Each module containing hands-on video(s) walking you through the various topics covered in this comprehensive program.

Basics of Stocks

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Wouldn't you love to be a business owner, but never have to rock up to work? Wouldn't it be great to sit back, and watch your company grow from the comfort of your own home? You can sit back while the dividend checks roll in. This may sound too good to be true, but is more achievable than you think.

Have you guessed it yet? Yup, that's right. I'm talking about stock trading. This financial instrument is the greatest tools ever created for personal wealth building. They are the cornerstone of almost all investment portfolios. Once you start on the road to building your own wealth, and eventually achieving financial freedom, you will need a solid understanding of stocks, and how to trade on the stock market.

In the past thirty years, the internet has created more opportunities for the average person to participate in the stock market. People's interest have grown exponentially since the boom of the net. Trading stocks used to be only for the rich, and powerful. Now, almost anyone can trade stocks with only a few hundred dollars. The internet has not only made it easier for people to trade stocks, but has also provided people with plenty of free information online. People no longer need to buy stacks and stacks of books to gain a thorough understanding of the stock market. All this information is available online for free, or for a small price.

Despite the increased popularity of stock trading, most people don't fully understand them. Many people glean small bits of information from overheard conversations on the train, or from their colleagues over a coffee. There's no guarantee these people know what they're talking about. Most likely, you've heard people saying something along the lines of "My cousin's stocks tripled in price since he's bought it. Now he's buying stocks XYZ". You're less likely to hear stories of "I lost 5k in stocks XYZ when I bought it at the top of the boom". People are less likely to tell you their failures, than their successes. All this information is based on the get-rich-quick mentality. Many people think that stocks is the way to instant wealth, with no risk attached. This is not the case, as proven by the global financial crisis that wiped many people's account. The best approach to trading stocks is education, and information. Protect yourself from making silly mistakes by learning, and understanding what you are doing, what you are risking, and making educated choices.

Floating Rate Notes

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Felix Salmon on the Treasury Department's plan on the Floating Rate Notes:  Why Would Treasury Want To Issue Floaters? (Link here) One point he makes in the article about the potential reference rate:

Continuing in the mode of offering self-serving advice that would be bad for Treasury, the TBAC recommended that Treasury use the new GCF index as the reference rate for FRNs. This would put Treasury in a position of taking on private credit risk, since, if we had a 2008-style meltdown and general collateral (rates) widened out due to counterparty risk, Treasury's FRN borrowing costs would soar.

The data on the GCF index can be downloaded (here), but I find it interesting that the DTCC (Depository Trust & Clearing Corporation) only publish the data for the past year, even though the data does go back a little further than that and the amount of data is sufficiently small that it is hardly a computing resource drain.

Plotting what is available, here is the Repo Index with the corresponding Par value used to average out the index:

In addition to the potential counter-party risk that Felix mentioned, the figure below shows how the repo index is more volatile than the constant maturity rate that the Treasury Department calculates every day (Felix also make this point in his article). The constant maturity yield is also a potential for use as a reference rate, though the concern here is that there’s a potential conflict of interest if the Treasury use a reference rate that itself calculates. One way to alleviate that is to make the methodology of calculation the constant maturity public info. The calculation is currently not clearly specified by the Department.)

 

I wonder given the relative volatility, would the use of the repo index deter some market participant from buying the instrument.

Reference: DTCC GCF Repo Index [DTCC],
  Daily Treasury Yield Curve Rates [Treasury Department],
  Why Would Treasury Want To Issue Floaters? [Seeking Alpha]

News to Me: The Thai Chipotle

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The information is dated September 2011, but is news to me nonetheless: Chipotle founder tries new Asian format with ShopHouse. The website is (here), and it lists only one location in Washington DC. I wonder if the company feels that the concept still has not been sufficiently tweaked to warrant expansion. From the article date, the restaurant would have been opened for about a year now.

I was in DC a year ago (and sadly, did not know about the place at the time). However, there are other places that are Chipotle-like for other types of food. Roti in particular comes to mind (website here).

A random statistic: as of August 6, 2012, the ShopHouse has 1,427 likes on Facebook, versus 1,850,393 likes for Chipotle. That is a multiple of 1,297. According to Wikipedia (reference here), there are 1,316 locations for Chipotle. The popularity of the ShopHouse as measured by Facebook likes, accounting for the number of locations (somewhat), seems comparable to Chipotle.

RSS to Email

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I was considering merging my information streams from email and RSS feed (via Google Reader) into just email. One way to do this is to have RSS updates be sent to my email inbox directly. After some googling, the one service I like is feedmyinbox [http://www.feedmyinbox.com/]. They allow users to have RSS feed updates for each email address. Paid accounts have this limit removed and enjoy some other benefits like real-time notifications.

After some testing, I decided to stay with having email as well as RSS feed. With Google reader and services like Full Text RSS Feed Builder [http://fulltextrssfeed.com/], I am able to read the complete article from within Google reader. Furthermore, I often save articles with Pocket [http://getpocket.com/] to read articles offline on my iPod Touch. The latter benefits outweigh the benefit of having everything in my email inbox.

Yield Curve and Fed Actions (2012-08-22)

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Longer term constant maturity yields reported by the Treasury fell today – presumably because of the FOMC minutes. For a news commentary, see: S&P 500 Erases Loss as Fed Minutes Show Stimulus Support. For a couple of expert commentaries:

FOMC Minutes: “many members” wanted more easing if growth not picking up [Also sprach Analyst]

FOMC Minutes: Discussion of policy tools the FOMC "might employ" [Calculated RISK]

 

The yields from 5-year onward all fell by about 9 basis points, possibly meaning that market participants expects that the Federal Reserve would be purchasing securities in that range.

Random Musing: Cash Flow Management at Starbucks

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I saw this in the email today:

If Starbucks is a smaller firm, I would view this as a sign of possible cash flow shortage. I.e., the firm needs cash in a hurry, and by giving a discount, it is able to elevated consumer spending in the period of time it needs cash.

However, the size of Starbucks and thus its ability to borrow makes this situation less likely. Looking at its cash flow statement (from Yahoo here), it does have changes in liabilities in March 2012 that reduced cash flow from operations; capital expenditure and investments are elevated in the June 2012 quarter.

Set Auto-Lock for Longer Than 5 Minutes in iOS

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On one hand, I often put down my iPod Touch for a few minutes to do something, only to return and find it already locked. On the other, turn off unlock would be an issue if I lost the iPod Touch since then someone can find it and look though the personal information.

After googling on and off for a few months, I finally find a way to set the auto-lock function on my Touch for 15 minutes. I can confirm that this works for my generation 2 iPod Touch.

To do this, you would need a jail-broken phone with either SSH setup or iFile installed. The instruction is here: http://modmyi.com/forums/file-mods/725740-auto-lock-timing.html .

For posterity, you would need to edit the file located at Applications>preferences.app>general.plist, and add a new entrie in the following section:

<string>setScreenLock:specifier:</string>
<key>validTitles</key>
<array>
<string>1_MINUTES</string>
<string>2_MINUTES</string>
<string>3_MINUTES</string>
<string>4_MINUTES</string>
<string>5_MINUTES</string>
<string>NEVER</string>
</array>
<key>validValues</key>
<array>
<integer>60</integer>
<integer>120</integer>
<integer>180</integer>
<integer>240</integer>
<integer>300</integer>
<integer>-1</integer>
</array>

As for the concern that locking the iPod Touch would make it harder for someone to return it if lost – you can always add your contact information to the photo you show at the lock screen.

A Good Paper on Yield Curve Estimation

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A very good paper by Kikuchi and Shintani titled "Comparative Analysis of Zero Coupon Yield Curve Estimation Methods Using JGB Price Data" (downloadable here; direct link here) on zero coupon yield curve fitting/estimating. They looked at various methods of curve fitting and concluded that the Steeley (1991) method is best suitable for estimating the Japanese zero coupon yield curve. These various methods include Svensson (1995), Nelson-Siegel (1987), as well as McCulloch (1975), and they judge the methods on the criteria of undesirable (negative) values, excessive unevenness, and fitness to market prices. They also make the estimated yield curve data from 1999 to 2011 available  (downloadable here).

One issue cause by the zero lower bound for many of the curve estimation methods is negative values at the short end of the curve. (The other common issue, particularly for yield curves estimated by Nelson Siegel or Svensson, being the up and down spike at the short end of the implied forward rate curve.)  You can see the negative value issue from the dataset used in Wright (2011) (data downloadable here). For example, the Japanese nominal 3-month zero coupon rate for 2002 October is -0.0132 in the dataset.

The main contribution of the Kikuchi and Shintani paper isnt't that Steeley (1991) is best for estimating the Japanese yield curve, but rather that the paper highlights additional considerations needed when estimating yield curves in addition to the standard tradeoff between fitting close to the market price and limiting excessive unevenness. If the purpose of the estimation is to find arbitrage opportunities, methods that fit close to the price would be preferred. If the purpose of the estimation is to understand the implications of the curve to the macroeconomics environment, a smoother curve is desired. If one were to use the curve to calculate implied forward rates, and find them to be the red line on the right (Figure 15 of Kikuchi and Shintani) – what implication should one draw about the macro economy?

Reference:
    Kikuchi and Shintani: Comparative Analysis of Zero Coupon Yield Curve Estimation Methods Using JGB Price Data (IMES) ,
    Steeley (1991): Estimating the Gilt-edged Term Structure: Basis Splines and Confidence Intervals (Journal of Business Finance and Accounting),
    Svensson 1995): Estimating Forward Interest Rates with the Extended Nelson and Siegel Method (Sveriges Riksbank Quarterly Review),
    Nelson and Siegel (1987): Parsimonious Modeling of Yield Curves (Journal of Business),
    McCulloch (1975): The Tax-adjusted Yield Curve (Journal of Finance),
    Wright (2011): Term Premia and Inflation Uncertainty: Empirical Evidence from an International Panel Dataset [http://pubs.aeaweb.org/doi/pdfplus/10.1257/aer.101.4.1514] (AER).

Amazon.com Top 100 Textbooks - Spring 2012

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A list from Amazon, link here.

The first economics textbook on the list is Mankiw’s Principles of Microeconomics.

The first 10 on the list:

 

Rank	ISBN	Title	Publisher	Primary Author	Year
1	890420254	Diagnostic and Statistical Manual of Mental Disorders DSM-IV-TR Fourth Edition (Text Revision)	Amer Psychiatric Pub	American Psychiatric Association	2000
2	321558235	Campbell Biology (9th Edition)	Benjamin Cummings	Jane B. Reece	2010
3	1433805618	Publication Manual of the American Psychological Association, Sixth Edition	Amer Psychological Assn	Amer Psychological Assn	2009
4	1429215976	Psychology	Worth Publishers	David G. Myers	2009
5	538453044	Principles of Microeconomics	South-Western College Pub	Mankiw	2011
6	78111005	Managerial Accounting	McGraw-Hill/Irwin	Ray Garrison	2011
7	73511706	Understanding Business	McGraw-Hill/Irwin	William Nickels	2009
8	321694155	Human Anatomy & Physiology with MasteringA&P (8th Edition)	Benjamin Cummings	Elaine N. Marieb	2010
9	132109174	Cost Accounting (14th Edition)	Prentice Hall	Charles T. Horngren	2011
10	77306295	The Art of Public Speaking with Connect Lucas	McGraw-Hill	Stephen Lucas	2008

Prominence of Apple

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Hoping to make use of my camera more for note taking – I am setting up Evernote on my laptop (because of its supposed feature of image OCR search.)  The default installation file for Evernote is for the Mac, and not the PC.

To get to the PC installation file, I need an extra click.

What is striking to me is how far Apple has come in terms of dominance – in particular in the education field. (I envision Evernote’s main demographics to be students.) Since I am using a Firefox browser on a PC to access the site, I don’t believe the website auto-detect my browser agent and give me the Mac version as the default.

Risks to Nominal GDP Path Targeting?

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Quoting from a paper by Professor Michael Woodford, titled "Methods of Policy Accommodation at the Interest-Rate Lower Bound" (available here):

A more useful form of forward guidance, I believe, would be one that emphasizes the target criterion that will be used to determine when it is appropriate to raise the federal funds rate target above its current level, rather than estimates of the “lift-off” date. If such an explicit criterion made it clear that short-term interest rates will not immediately be increased as soon as a Taylor rule descriptive of past FOMC behavior would justify a funds rate above 25 basis points, this would provide a reason for market participants to expect easier future monetary and financial conditions than they may currently be anticipating, and that should both ease current financial conditions and provide an incentive for increased spending. 

An example of a suitable target criterion would be a commitment to return nominal GDP to the trend path that it had been on up until the fall of 2008. This would both make it clear that policy will have to remain looser in the near term than a purely forward-looking Taylor rule would imply, and at the same time provide assurance that the unusually stimulative current policy stance does not imply any intention to tolerate continuing inflation above the Fed’s declared long-run inflation target — that in fact, it will not led to a future level of nominal income any higher than what people had reason to anticipate at the time that they acquired their existing nominal assets and undertook their existing nominal obligations.

If the Federal Reserve decides to do this and then inflation hits 5% with GDP continues to lag - then what? Shouldn't a threshold for inflation also be announced along with the GDP target path - perhaps 3% over the medium term as Chicago Fed President Charles Evans suggests?

Now, if both the GDP targeting and an inflation threshold are announced by the Federal Reserve, could someone plausibly infer this to be a negative outlook on the economy? I.e., someone viewing the Federal Reserve as believing stagflation as possible (due to quantitative easing, labor market structural issues, oil shock, and a plethora of possibilities)?

Path targeting can be beneficial, but it has some risks that need to be weighed against.

What it means to own stocks

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What is a stock?

A stock is a share of the ownership of a company. A stock represents a claim on a portion of the company's assests and earnings. Stocks, shares, or equity, they all mean the same thing.

Owning Stocks

Holding onto stocks means that you are one of the many owners, or shareholders of a company. You have a small claim to the company's assets. All of their assets, even including the cushions of the couches in their building. In reality this piece of ownership is very small. You are entitled to the company's profits, and have the right to vote within the company as well.

A stock certificate represents your ownership of the stock. This proof is not usually printed in today's electronic age. Your broker keeps an electronic copy on your behalf. This makes it easier to trade shares. If you were buying and selling shares every few days, or even multiple times a day, that would involve alot of stock certificates. In the past, you needed to physically take the certificate down to your brokers. Nowadays, trading is alot easier, with electronic copies of all your stock certificates stored on your broker’s server.

Although being a shareholder means you can have a claim on the company’s assets, it does not mean you have a say in the company’s day to day business. The extent of your power can be expressed at one vote per share at the annual board of directors meetings. Although theoretically shareholders can vote against the management of the company, this is not usually the case. The management of the company are responsible for the running of the company, and you as a shareholder collect dividends every 6 months.

From an investment perspective, this arrangement is great. You don’t have to work for your money. The company’s board of directors have to do all the leg work. You just own the shares, and sit back to watch the profits flow in through the dividends. The more shares you own, the larger your dividends will be. Your claim on assets is only relevant if a company goes bankrupt. In case of liquidation, you'll receive what's left after all the creditors have been paid.

Another benefit of owning stocks is that you are not liable for any of the company’s debts. The most you can lose is the value of your investment. If the company goes bankrupt, you can never lose your personal assets.

In summary, owning stocks does seem to be a win-win scenario. You have a claim on the profits of the company, and can get rewarded through its dividends, without being responsible for the company’s day to day running, or its debts.

The best place to get free EOD historical data

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Of all the places online where you can get free EOD historical data, yahoo finance is the best. Why? Because it caters for many stock exchanges in the world. Many other websites may only cater for one stock exchange, mainly U.S. stocks. If you live outside the U.S, it is significantly harder to get free historical stock data. The complete list of stock exchanges supported by yahoo can be found here: yahoo finance exchanges. To date, there are about 60 stock exchanges supported on yahoo. Thats about 60 countries yahoo caters for. No other online source support for that many stock exchanges.

The amount of historical data you can download is all dependent on the age of the stock, and the data provider. Some stocks on yahoo go back over 40 years! Some stocks are younger, and have only 10 years of data. But let me emphasise again how much data there is stored on yahoo for you to download. Alot! And its all free. Anyone in the world can download the data for their technical analysis.

The only downside to all this free data, is that yahoo makes it a little hard to download their data. Just a little. There's many ways around it, like this spreadsheet I wrote to bypass their troublesome ways: historical stock data downloader.

Let me explain. Yahoo does not allow you to state your stock exchange and say 'give me all historical data for the NYSE stock market for the past 10 years'. No no, they don't want to make it that easy for you. You have to specify each stock that you want. You have to download historical data one stock at a time. Thats alot of clicks for 500+ stocks.

Another way that yahoo makes it harder for its users, is that it uses its own format. Most software programs use metastock format. Yahoo chooses not to provide their data in this format. So users will not only have to manually download each stock, but then they have to go and reformat it into metastock format. What a pain!

Lucky for you, this is easily automated. I've written an excel spreadsheet macro so users don't have to do all that clicking, and reformatting. Downloading is as easy as the click of a button. I hope you enjoy my free spreadsheet, and share it round to others looking for free EOD historical data. Enjoy!

spreadsheet >> historical stock data

S&P 500 historical data

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Download free S&P 500 historical data using the spreadsheet I've developed. 10+ years of data. EOD (end of day), end of week, or end of month.

How it works

Yahoo finance allows everyone to download their stock market historical data for free. Available all day, everyday, for stocks going back for over 10 years. It is the best source online. You can choose to download the stock adjusted, or unadjusted for dividends and stock splits. There are only two downsides to it:

1. Yahoo does not have a function to download ALL stocks for the S&P 500 at one time. You have so specify each individual stock for download. Each stock involves at least 5 clicks. Multiply that by 500, and that’s at least 2500 clicks to download all stocks.

2. The data downloaded is not in the required format. Most stock programs require the data in metastock format. Its not hard to do. Simply change the date format, insert the symbol at the start, and remove one of the unnecessary columns. Multiply that by 500 again, and that’s over 2 hours of data manipulation.

Lucky there is a solution. Since this task is very repetitive, its easily automated. I've written a excel spreadsheet macro that will do the task for you. And it’s completely free. I hope my spreadsheet will help other stock traders in the world.

spreadsheet >> S&P 500 historical data

Good luck!

Two ways to get historical stock data

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There's two really good resources to download historical stock market data:

Bulk Download

This is a spreadsheet that can download and reformat historical stock data for traders. It is best used for large bulk downloads from one month, to 10 years of data. Simply enter your list of stocks, choose the start and end dates, and select the 'download' button.

The spreadsheet will save the .CSV files to your PC. The default location is c:\historicaldata\. The files are ready to be imported into technical analysis software programs that accept metastock format.

Daily Download

This is an online function that is fast, and efficient. It can handle up to one month of 'daily' data, or one year of 'weekly' or 'monthly' data. The instructions are pretty self explanatory. Put in the list of stocks you're interested in, select the format, and date range, and press the download button.

The website will go to yahoo finance, download the data, and reformat the data into your chosen format. Done! Then you can simply import the historical data into your charting software.

Link to both resources: stock market historical data

Why Backtesting is Critical for Stock Trading

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So you’ve decided to give stock trading a go. You’ve read afew books on technical analysis, and learnt the basics on candlestick patterns,moving averages, oscillators, and other technical indicators. You’ve eitherfound a stock trading system, or developed your own. Whether it’s a simplemoving average crossover, or a complex system involving Fibonacci, probability,trend lines, and oscillators, you will need to test your system. How will youknow if your trading system can be profitable in the future if it isn’tprofitable for at least some period in the past.
We all know the past doesn’t necessarily represent thefuture. All books, and websites online have that disclaimer. And it is true;Just because a trading system performs well in the past doesn’t mean it willremain profitable in the future. However, you may also want to look at it fromthis point of view. If a trading system continually loses money every year forthe past 10 years, what’s the likelihood that it will magically becomeprofitable over the next few months? If the graph showing capital over timelooks like a slippery slide, it is highly unlikely that it will look like amountain once you start trading with real capital.
If the current market is ranging sideways, then you would bemore comfortable going live with your real money if your back tests showed itwas profitable at least part of the time when the market previously rangingsideways. However, don’t expect profits in a ranging market if the system’s atrend following system. Not all systems are profitable 100% of the time. Someare only profitable during trending periods. Others are only profitable duringranging markets. There is no system that will be profitable in all different marketconditions. You will need to use your common sense when performing back testing.
There are many software programs available for downloadonline that will test your trading systems for you. Simply code in your buy andsell conditions, and the program will run through all the data it has, and spitout a report with the details of each trade placed, and the profit or lossoutcome. I personally recommend Amibroker, as this is what I used after someresearch online. I am not affiliated with the software company in any way. Ijust think that it is the most value for money software you can get online. Itis decently priced, and has all the critical functions you need. I don’tbelieve you should spend 6 thousand dollars on a piece of software, and thenanother 6 to attend the training course. Amibroker is a few hundred dollars,and will do the trick nicely. There is a huge support network online throughforums that are happy to help you with any trouble you have with the software.
You don’t have to choose Amibroker. Any other chartingsoftware will do. Once you’ve got that, its simply a matter of writing up yourbuy and sell conditions, importing Historical Stock Data into the software, and back testing your trading systems.
Good Luck with all your future trades.

ausmalbilder diddl Bilder, Images

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ausmalbilder spongebob Bilder, Images

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