Tool to Backtest an Indicator?

[michelle99]

Hello there. I have an indicator which provides entry signals. Could anyone recommend a tool to perform backtesting? I realise there are quite a few tools for backtesting strategies but I need a backtesting tool for an indicator. From this tool I need to be able to backtest to answer questions like:

* Manually specify position entries
* What is the most profitable profit target?
* what is the most profitable initial stop loss?
* What stop strategy should I use?
* Show me a profit/loss report of the trades I entered for backtesting

As a side note: I have the DTS system from Indicatorwharehouse and with it "Profit Finder". However, Profit Finder seems to be unstable and I don't feel as though I can rely on the results as the CALCULATE button yields varying results for the same trade entries. I just need something more stable.

Thank-you,
Michelle

[NinjaTraderEcosystem_Wesley]

Hello michellepace,

Depending on how your indicator is coded, you may be able to create a strategy within NinjaTrader based on inputs from the indicator itself. If this is possible with the indicator, the strategy could likely be created with NinjaTrader's Strategy Wizard.

The NinjaTrader Strategy Analyzer provides many options for strategy optimization so you can figure out what parameters will likely work best for you to trade a specific strategy with the instruments you trade.

There are additional custom trading panel and strategy resources publicly available through www.ninjatraderecosystem.com as well.

If you have any additional questions or need more information regarding backtesting, optimization, or strategy creation, please feel free to email me at info[at]ninjatraderecosystem[dot]com and reference this thread.

[michelle99]

Hi Wesley, thank-you for your reply. I thought I would just clarify my understanding of one aspect here on the forum for the benefit of anyone else reading:

If I had a plain vanilla chart without a strategy - is there tool I could use for back testing my "manual" trades? That is, I just need to be able to manually click my entries and output a file where one row is the profit/loss of each trade taken. If I can specify parameters to define exit strategies and targets, great, if I need to do it manually - that's fine too.

[NinjaTraderEcosystem_Wesley]

Hey michellepace,

I think I have a better understanding of what you are looking for. NinjaTrader's Market Replay feature allows you to test your manual trading ideas in a simulated environment using data from previous days. You can also trade in simulation with live data to forward-test any trading ideas you have.

More information about Market Replay can be found here: http://www.ninjatrader.com/support/h...ket_replay.htm

More information about NinjaTrader's Trade Simulation capabilities can be found here: http://www.ninjatrader.com/support/h...simulation.htm

I hope this information is helpful for you!

[michelle99]

Perfect, yes! That's what I need. Thanks Wesley :-)