| OmniTrader -
back testing your strategies
[Other
Examples] |
- This is an
example using IPL (a company with a long term trending history until
recently, when it crashed).
- Firstly this
stock was selected because its a trending stock without much
volatility - this is critical given the trade plan in this example
was to only purchase this type of share.
- The analysis
uses two
strategies and only selects "Long Positions" (i.e. the strategy modules
were modified to only
activate longs not shorts).
- The strategies
used are "Guppy-Darvas" and the "Wave Trending" strategy.
- In the
simulation each long
position was then purchased and sold as suggested by the simulation
without modification.
- The outcome was
a 46% return over a year - lets look at this in more detail
|
|
OmniTrader - 12
month chart -
showing Guppy-Darvas-Wave Strategy - note the vote signals at the bottom
of the chart |
 |
|
|
The Portfolio simulator
was then run
using these two strategies, and a "Fixed Trade" size (which is
one of the many options available in the simulator)
- the graph shows
the equity curve (the original capital plus cumulative
profits/losses) and the details of the analysis
- The key point is
that on the $10,000 capital resulted in a profit of $4630 or 46%.
- There are some
losses where the equity curves falls - these losses could have been
reduced by modifying the strategy to identify an earlier exit.
- This is why you
should use test your strategies in the simulator to see if you can
modify the strategy to get a better result, or add additional profit
stops.
- For more information
on how to do this, use the online
Tutorial inside OmniTrader 2008.
-
You can also order the seminar
CD - Mastering Money Management which explains this in more
detail.
|
 |
|
|
|
The following is the schedule of actual trades which were
automatically purchased by the system, and match the vote line.
The lesson here is that the strategy
allows losses to get to big when there is a fast fall in share price |
 |