JamieSorres
Junior member
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Dear Traders,
I am doing trading system development in TradeStation and I guess I am somewhere in the intermediate level of system testing. I think I am getting further in my research because my Out-Of-Sample results start to get profitable. It is pretty logical that before getting into the real trading one has to evaluate the system using a plenty of different methods. So, I have begun to search for methods to test the stability of my results and here is what I found...
1. One can extensively use the Out-of-Sample approach and "test 'til he/she drops".
2. One can also do modeling using MonteCarlo modeling (www.breakoutfutures.com) and TradeStation features.
3. One can use the MoneteCarlo modeling function in WLD - MonteCarlo Lab.
4. One can also use the MSA function from www.adaptrade.com that also includes MonteCarlo simulation.
5. One can use ProSizer with the same MC simulation capabilities by www.unicorn.net.
6. One can also model his/her portfolio using the BootStrap method, although I haven't found any software that utilizes this method.
7. One can also use the time series simulations such as DataScrumbling described by Tushar S. Chande, PhD in his book "Beyond Technical Analysis: How to Develop and Implement a Winning Trading System".
8. And finally, one could use some random number generating software to test his/her system, which I haven't yet tried myself.
Some may say, "Why would one need to use all these techniques to test a system?". I think that those who have traded real markets will understand that it is a good idea to think twice or even more times before implementing the system in real market environment.
I have also researched the web and found a lot of companies that sell their systems. All the sites I went to say that their systems will profit consistently. However, I could not find any information on their testing procedures in any of the sites I was looking at (a sample of 100 first websites was analyzed in both google.com (50) and yahoo.com (50) search machines using relevant search keywords). Or maybe I was not looking in the right direction? Let me know if I am wrong and there are sites that provide such information.
So, my main questions are...
1. What are other methods of system testing available out there?
2. Where could I find this information (books, websites)?
I will appreciate any relevant information.
Thank you in advance,
Jamie.
I am doing trading system development in TradeStation and I guess I am somewhere in the intermediate level of system testing. I think I am getting further in my research because my Out-Of-Sample results start to get profitable. It is pretty logical that before getting into the real trading one has to evaluate the system using a plenty of different methods. So, I have begun to search for methods to test the stability of my results and here is what I found...
1. One can extensively use the Out-of-Sample approach and "test 'til he/she drops".
2. One can also do modeling using MonteCarlo modeling (www.breakoutfutures.com) and TradeStation features.
3. One can use the MoneteCarlo modeling function in WLD - MonteCarlo Lab.
4. One can also use the MSA function from www.adaptrade.com that also includes MonteCarlo simulation.
5. One can use ProSizer with the same MC simulation capabilities by www.unicorn.net.
6. One can also model his/her portfolio using the BootStrap method, although I haven't found any software that utilizes this method.
7. One can also use the time series simulations such as DataScrumbling described by Tushar S. Chande, PhD in his book "Beyond Technical Analysis: How to Develop and Implement a Winning Trading System".
8. And finally, one could use some random number generating software to test his/her system, which I haven't yet tried myself.
Some may say, "Why would one need to use all these techniques to test a system?". I think that those who have traded real markets will understand that it is a good idea to think twice or even more times before implementing the system in real market environment.
I have also researched the web and found a lot of companies that sell their systems. All the sites I went to say that their systems will profit consistently. However, I could not find any information on their testing procedures in any of the sites I was looking at (a sample of 100 first websites was analyzed in both google.com (50) and yahoo.com (50) search machines using relevant search keywords). Or maybe I was not looking in the right direction? Let me know if I am wrong and there are sites that provide such information.
So, my main questions are...
1. What are other methods of system testing available out there?
2. Where could I find this information (books, websites)?
I will appreciate any relevant information.
Thank you in advance,
Jamie.
, it's just what i was looking for. thanks 
