Software?

[the blades]

New to this site so please bear with me.......

I'm currently a mid - long term investor who's interested in shorter term trading with TA. I'm interested in any software that is available that can be used to quickly back test certain filters;

EG - if I were to buy and sell a stock or index based on RSI values (and then more complicated indicators), what would by the results of this strategy over various time periods.

Obviously I can do this manually with charts but even this woould become difficult with a combination of indicators.

At this point, I'd be interested in cheaper, more basic software.

ANY advice greatly appreciated.

UTB

 

[ewilcox]

Metastock or TradeStation can do this. Both are quite expensive though and will need a third party data source.

 

[knorrie]

Have a look at AmiBroker at www.amibroker.com, only $129 one-off fee and can work with free data sources such as Yahoo/MSN.

KenN

 

[JTrader]

"EG - if I were to buy and sell a stock or index based on RSI values (and then more complicated indicators), what would by the results of this strategy over various time periods."

I once heard of a well documented/infamous program called "Star Trader" from MCI technologies (as featured on BBC's Watchdog program) that back-tests stocks based on when the RSI value moves up through 30 and down through 70, as entry and exit criteria for trades......but please, do not go down this route, as it is widely viewed as hugely overpriced and less capable - to say the least - than what the companies sales people would have you believe! :cheesy:

 

[the blades]

Have a look at AmiBroker at www.amibroker.com, only $129 one-off fee and can work with free data sources such as Yahoo/MSN.

KenN

- thanks for the replies chaps. I've downloaded amibroker (trial) but it seems that to perform backtesting, you have to learn the "language". Is this a feature of all these types of programmes? I was hoping you could simply list a set of parameters but perhaps I'm after too easier life?

Thanks again.

UTB

 

[Skimbleshanks]

Every program with the ability to backtest requires you to learn its own language. You then use the language to input your testing criteria, etc. It's a pain devoting the time and effort to learn the language (for me, anyway) so it's well worth doing the research now, and plumping for the one you think you'll use for the foreseeable future. There's no short cuts, although there are supporting websites where users generously post their codes - I've seen ones for Amibroker, TradeStation, MetaStock, WealthLab, etc.

 

[Uncle]

As a long standing devotee of Metastock I have no hesitation in recommending same. Contact Ruth at Q-Data, Tel: 01594 810077 for a chat. Or alternatively, email to: [email protected]. You get a 30 day no quibble money back guarantee. Agreed its not cheap, but then if you are serious about your trading it is worth investing in a programme to give you all the technical tools to chart with. Yes there are many you will never use, but by having them all you can ascertain which suits your trading style. I could wax on and on about Metastock and all it contains, but better you get the details and see if it is likely to suit you personally.

Best wishes whatever you choose

John

 

[Rognvald]

Take a look at Linnsoft's Investor RT as well. I think it has a simpler language then most and has a very well organised website and a company based support BB and weekly chat session
http://www.linnsoft.com/
It is a small, friendly and helpful outfit and you can speak directly to the proprietor and his programmer.

 

[knorrie]

AmiBroker has a 3rd party tool called PowerScan which may do what you want, see:

http://www.amitools.com/

It apparently lets you setup various test conditions and generates the AB language code for you.

I've never used it but I can well imagine although it may help you learn the language, your expectations will soon exceed its capabilities. Try downloading some of the many code examples from the AB on-line library here, and see if you can make sense of them:

http://www.amibroker.com/library/

Also, spend a few minutes going through the language tutorial in the help file.

KenN

 

[al76]

I found TC 2000 easy and quite strait forward, the software is free and you can have a month free trial but it is only for US data, you can scan with the personal criteria formulas choosing from the indicators offered, I think it is worth to have a look.
http://www.wordenresearch.com/xmlpage.aspx?xmlpage=softwarepage

 

[Volatile]

The indicator optimiser in Updata TA ( http://www.updata.co.uk ) will allow you to do exactly what you asked for here - you select an instrument or sector, RSI, and then set a range of values for the entry/exit condition and it will either run a backtest showing you the trade list or find the historically optimum entry/exit based on your specified filter.

There is no guarantee that because something has worked on back data that it will work in real life mind you,

 

[the blades]

The indicator optimiser in Updata TA ( http://www.updata.co.uk ) will allow you to do exactly what you asked for here - you select an instrument or sector, RSI, and then set a range of values for the entry/exit condition and it will either run a backtest showing you the trade list or find the historically optimum entry/exit based on your specified filter.

There is no guarantee that because something has worked on back data that it will work in real life mind you,

Many thanks to all - I can't praise this website and the contributors enough - what a wealth of information.

Anyway, it looks like I'm going for the Amipro system - the demo seems relatively simple and the price is worth a punt. Let's see how I get on.

UTB

 

[SOCRATES]

The best software is that contained in one's head, as a consequence of taking the trouble to study in exhaustive detail the theatre you intend to enter, and then training yourself to act correctly within a framework of logic and reason, then the software is just a tool to be used and not the other way round.
Too much emphasis is placed on software. Some even work on astrology and others will nearly make the tea as well. None of this works, but what does work is work, and plenty of it and a well trained Mark One Eyeball. This the majority are unwilling and unable to do.

 

[Uncle]

I can but agree with Socrates..........However a good software package can help in making that difficult decision "WHEN". Having said that, the reading of any chart is down to the the eyeball and interpetation of the what the eye sees. One must never believe there is a a Holy Grail waiting to be discovered.

John

 

[the blades]

I can but agree with Socrates..........However a good software package can help in making that difficult decision "WHEN". Having said that, the reading of any chart is down to the the eyeball and interpetation of the what the eye sees. One must never believe there is a a Holy Grail waiting to be discovered.

John

Isn't the foundation of all TA based on patterns that have worked historically, the inference being that they will continue to do so (to some degree of accuracy)? Surely then, some form of backtesting is desirable and therefore software almost a must?

I've been heavily invested without the use of software, yet as I move to shorter horizons I feel I need some "computer aid" to guide and re-asssure me, without ever viewing it as a panacea.

I'll soon see.

UTB

 

[Uncle]

Blades................. Your are quite right about the foundation of TA and the inference drawn from same. I am a great believer in the use of charting..........the difficulty for most newcomers to Technical Analysis is finding the right parameters for their particular trading style, for what might work on an individual stock may not work on another, and even worse if you use exactly the same with indices or futures, for the cycles vary dependent on the instrument being traded. Very often the newbie to T A tends to look for tops and bottoms only to find it wasnt and continues its trend. It pays to be patient and wait for the trend to become established, then look for the peaks and troughs and trade accordingly. Remember the "trend is your friend" and always always always apply a stop loss after opening the trade.

Best wishes

John

 

[the blades]

Blades................. Your are quite right about the foundation of TA and the inference drawn from same. I am a great believer in the use of charting..........the difficulty for most newcomers to Technical Analysis is finding the right parameters for their particular trading style, for what might work on an individual stock may not work on another, and even worse if you use exactly the same with indices or futures, for the cycles vary dependent on the instrument being traded. Very often the newbie to T A tends to look for tops and bottoms only to find it wasnt and continues its trend. It pays to be patient and wait for the trend to become established, then look for the peaks and troughs and trade accordingly. Remember the "trend is your friend" and always always always apply a stop loss after opening the trade.

Best wishes

John

"let the trend be your friend" - well as I'm primarily a momentum investor (up to now) I couldn't agree more. Yet I've even backtested these methods , albeit using excel.

all the best - UTB