A back test is where a trader takes a series of historical price action data and tries to find patterns that were profitable in the past. The trouble is when a trader tries to keep changing... Read more

The normal path of nature has fragile things like living creatures and mechanical things follow a ‘bathtub curve’ where, after being a baby then child the probabilities of  death... Read more

When completing a backtest in a market it is crucial to understand ten dynamics to see if the system is viable for trading live with real money. While backtesting can’t ensure that you... Read more

Here is an example of a simple long term profitable trend following system for the $SPY ETF. This is really best compared with buy and hold investing and presents a simple alternate that cre... Read more

Back tests are views into historical price action, they are not crystal balls that show us how profitable a system will be in the future. The best use of backtesting is as a filter to test y... Read more

Many new traders wonder how to develop their own entry and exit signals and build their own trading systems. I wanted to share a few sites that provide basic backtesting functionality on a w... Read more

Here are three interesting long term moving average backtests of the tech sector ETF $XLK from January 2000 to March 2017. These are examples of long term trend following system for one asse... Read more