For a quick tip on how to read and understand your backtest reports, go to this Tips and Tricks link. http://zacksrw.com/Tips_Tricks18.asp
Tip: I'll first look at the chart. If the chart looks terrible -- then it's back to the drawing board. If it looks good, then it's worth more investigation. But I'll look at the Compound Annual Growth Rate, Maximum Drawdown, Average and Longest Winning Stretch and Average and Longest Losing Stretch to make sure it's a strategy that fits my risk to reward tolerance/profile.