An Easy Way to use Excel to Backtest a Trading Strategy - Part 2

This video provides further information about how to backtest a trading strategy. Includes how to calculate the gross profit; the % winnings trades and the % profit per annum. My new ebook course on building backtest models in Excel is now available in the Amazon Kindle Store: http://amzn.to/15NDaw4 For blog post and formulas: http://wp.me/p32qmZ-62 Follow me on twitter: https://twitter.com/Tradinformed

Comments

1. Totally agree with Sakis Paratsoukis
2. No.Year Trading Strategy of Buy above EMA is wrong formula.
3. Thanks for the response. Good point, the % winning trades would be different if it is calculated based on opening a trade when the price crosses above ema and closing when the prices crosses below. I have recalculated using this method and % winning trades would be lower at 41%, but the highest winning trade would be much higher at $15,441. If you are interested in a more advanced spreadsheet have a look at my recent video on backtesting MACD strategy.
4. Hi..thx for the spreadsheet, however, I dont agree with your "Number of Winning Trades": because you are not actually closing trades out, you are actually counting "Number of Days of Profit". So the subsquent metrics on % winning trades etc arent reflective of actual trades, but on days.
5. That sounds good, I subscribed and will be looking forward to any future videos. Again thanks.
6. Thanks for the reply. I'm going to add a third video in this series building up the spreadsheet with some more metrics to compare the strategies. I will look at adding some more complexity, maybe using an ATR stop loss or something similar.
7. This was nice but I wish you would go into more advanced strategies. I wanted to back-test a strategy where I buy when some indicator is no longer oversold, sell when some indicator is overbought, and a stop loss at ATR. I have all the equations for the indicators, and I have when to buy, the problem is the sell. I'm not very good at excel :( But again thanks for the video.