Backtest Strategy

Brief

This section describes how to test how a strategy works on historical data.

Details

In Marketscope you can check how standard and custom strategies work on historical data. Such checking is called backtesting.

Marketscope provides a special application for backtesting called Strategy Backtester.

To backtest a strategy, do one of the following:

• On the Alerts and Trading Automation menu, click Backtest Strategy.
• Right-click in a chart, point to Alerts and Trading Automation and then click Backtest Strategy.
• In Strategy Dashboard, click the Backtest Strategy button on the toolbar.
• Right-click in Strategy Dashboard and then click Backtest Strategy.
• Right-click a strategy or alert label on any chart and then click Backtest Strategy.
  
  * In the E*TRADE FX platform, the command is available on the Alerts and Trading Automation submenu of the Charts menu.

The Strategy Backtester window will appear.



There you should specify the account and strategy parameters and choose a range of data and instruments to test. The strategy will be applied to the past market data, and you will see its results on a chart and in a special report. Then you can save your backtesting project including all the backtesting parameters and results.

To open a saved backtesting project, on the Alerts and Trading Automation menu, click Open Backtesting Project.

For detailed instructions on working with Strategy Backtester, see Strategy Backtester Help available on the Help menu of the application.