VSA Backtesting

Fran8

Active member
212 1
Hi everyone

I have gone deep into studying VSA since Im a firm beliver that the relationship between price and volume is what moves the market.

The problem is that when you read books like "Master the Markets" written by Tom Wlliams you end up with more questions than answers.

I have decided to try to find the answer in a more scientific way by backtesting, the problem is that I use Tc2000, It does not have backtesting and to be honest even if it had I do not have programming knowledge.

So if you could backtest the following I believe that it will be very veneficial for all that are confuse and interested.

What I would like to backtest is the following:

1-UP and C>O and C>MID and V>V1
2-UP and C>O and C>MID and V<V1
3-UP and C>O and C<MID and V>V1
4-UP and C>O and C<MID and V<V1
5-UP and C<O and C>MID and V>V1
6-UP and C<O and C>MID and V<V1
7-UP and C<O and C<MID and V>V1
8-UP and C<O and C<MID and V<V1
9-DOWN and C>O and C>MID and V>V1
10-DOWN and C>O and C>MID and V<V1
11-DOWN and C>O and C<MID and V>V1
12-DOWN and C>O and C<MID and V<V1
13-DOWN and C<O and C>MID and V>V1
14-DOWN and C<O and C>MID and V<V1
15-DOWN and C<O and C<MID and V>V1
16-DOWN and C<O and C<MID and V<V1

Up means close above previous day
Down means close below previous day
C means close
O means open
Mid means mid point between high and low of the bar
V means todays volume
V1 means yesterday volume

Above you can find all the possible convinations during up bars and down bars.

The backtesting will show how it was able to close in the next day, two days and three days looking forward after the above conditions happened.

Example:

Lets take condition 1-UP and C>O and C>MID and V>V1

what I would like to know is if after this conditions the % of times that it closed up or down the following day, two days and three days after.

To be a valid backtest it will have to be backtested with the S&P 500 and lets say 50 ramdom stocks that have a minimum volume of lets say 50,000 shares daily and a minimum price of 15.

Thanks for the help in advance please fell free to ask any questions
Kind regards
 
Last edited:
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock