RW: 10 years
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.
RW: 0 years
Hello:
Assuming I do weekly buys and sells, when looking at back test results for a strategy, what test period is more important- performance during recent 12 weeks, recent 12 months, all available data, performance during last trading market, bull market, Bear Market or a combination of these markets? For example backtest performance done during the period 10/26/2007 to now covers a bear market, bull market and sideways market. Is this enough to test the strength of a strategy or would you include the maximum data available?
I also would like to know when is the best time to readjust a weekly portfolio (buy and sell per strategy recommendation)- last 5 or 10 minutes of trading on Fridays or the first 5 or 10 minutes of trading on Mondays. I suspect there is a upward bias for the Markets on Fridays. Thanks.
