As investors or traders, a key question that always bugged our minds is this - How do we know if an idea we have works? Some of you may opt to follow your intuition and just do it. Others may try to eyeball historical charts to get a sense of whether their idea works. But there are more systematic ways to test out your idea against historical data if you can distill it down to a distinct set of rules. And this is called backtesting.
Of course, there will be those who questioned if looking back at history is even relevant. While history may not exactly repeat itself, it is nevertheless a sensible and widely used approach in the industry. And it is also one of the most basic homework quants will always do before implementing anything. Why? Think about the statement below:
If your idea does not even work in the past. Then what is your basis for it to work going forward?
As part of this new video series, we are introducing a software or platform called Ninja Trader. It is geared towards those who use technical analysis and charting for their trading. It may not the best or most comprehensive tool out there. But it is good enough for most, and the best part - it provides data, charting, and backtesting functionalities free of charge.
In this first video, we will look at the following:
About Ninja Trader
Where do we get Ninja Trader
Connect to free EOD data
Create your own list of securities
Chart with Ninja Trader
Add technical indicators onto the charts
Disclaimer: This video is provided for informational purposes only. We are not affiliated with Ninja Trader. This video is not intended to be, nor shall it be construed as, financial advice, an offer, or a solicitation of an offer, to buy or sell an interest in any investments.
AllQuant is a financial education provider. For those who are interested in learning more about how to use a quantitative approach to build a resilient multi-strategy portfolio, we run a skills-future eligible 3-day live online course via Zoom which is subsidized (up to 90%*) and accredited by the Institute of Banking and Finance. Click the button below for more details.
Separately, AllQuant also provides online courses covering various investment strategies which you can access anytime 24/7 at your convenience. To find out more, click below.
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