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At
this point, you have seen how to define
Setup, Entry and Exit strategies to
build a specific systems strategy for
testing. When you are ready to test, you
point the program to a specific TC2000/TCNet
watchlist, pick the number of days that
you want to Backtest and launch the
study. Depending on the size of your
Watchlist, the number of days involved
in the test, the complexity of your
Strategy, and the speed of your
computer, the test can take anywhere
from a minute to hours.
TCC prefers to output to an Excel
spreadsheet but can produce output in a
comma delimited file format which can be
read by most spreadsheet programs. You
the user, have the ability to decide
which fields to display and in which
order. There are 160 fields to choose
from including the ability to display 60
custom formula results of your own
design. Following is an example of what
a "Trades" page can look like.
The idea behind using a
spreadsheet for output was to allow you
the flexibility to perform additional
analysis after TCC has shown you what
your system would have yielded based
upon past results. By sorting, adding
additional Excel calculations, and
examination, you can further refine your
strategy by methods such as:
- Sorting by
Percent Profit to see what
characteristics the winners have in
common or characteristics that the
losers share.
- Run Excel
correlation studies to see the
strength and predictability of
various indicators. For instance you
may want to study a Stochastics
value against percent profit to see
if Stochastics has predictive power
for your approach.
- Examine the
highest profit point in the trade
versus closing profit to see if you
are reasonably capturing all the
profit available. Maybe you want to
use profit goals instead of a
trailing stop.
- Examine the
number of days in the trade versus
profit maximums to see if different
stop losses should be applied based
upon the number of days in the
trade.
Hopefully, you get the idea as to the
unlimited number of ways to examining
and refining your trade strategy to
maximize your chances for success that
TCC supports. |
