Either manually or with the help of any automated tool, you can check your stock trading system in the top FTSE 100 if you're careful enough. Although there is primarily no problem in checking manually, you must keep in mind that for manual testing you must invest a good amount of energy and time. You can ease your job considerably by using an automated software, although you need to build up your own screening criteria which must be distinct. The rest of the job is easy but it will be executed by the computer software tool. There are thousands of software available in the market, which can make you confused easily.
Some of the manufactures even offer you diagnostic test applications, but the best idea is to go for automated software which is compatible with a third party data provider You will end up making a wrong assumption in case you think that you will gain success immediately after back-testing the stock trading system. Your next job is to gather the final result of the diagnostic tests and analyse them accordingly. There are many who essentially concentrate on the amount of probability involved. They will go in for a trading process in case their back testing shows that the process is profitable as you can see from what we have discussed. However, a number of factors like expectancy, win-to-loss ratio, average wins, common losses, maximum consecutive losses, maximum draw down should be taken into consideration along with the profitability factor.
Stephan Pinner is a online stock broking consultant who deals with online trading who is based in the UK. Article Source: http://EzineArticles.com/?expert=Stephen_Pinner |
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