Trading Friday: Developing a step by step algorithmic trading strategy and Back Testing it



We develop a trading strategy, using technical indicators and then back test it to see how well it did historically a few times? Since we want a risk reward ratio of say 2:1 we only need the trade to win 1 in 3 times. This is where quant and trading meet since the quant hat lets us back test computationally and estimate how trading strategy would have done over longer periods of time and so tell us which of our strategies tends to do better? That said this is all rough work and we don't want to think that things are that precise which they are not!

Comments


    Additional Information:

    Visibility: 390

    Duration: 20m 20s

    Rating: 1