Backtesting 101
Learn to Backtest Historical Price Action Using Moving Averages
Why backtest? Because analyzing price action data from the past can increase your odds of profitability in the future.
In this 18-part eCourse, you'll learn what backtesting is, why it's important, and how to do it effectively for better trading results. We'll cover the following topics in detail:
- What is backtesting?
- Data mining
- Returns
- Beating Buy and Hold
- Winning & Losing
- Profitability
- Backtesting in different market environments
- Goals
- Emotions & Stress
- Selection Bias
- Market Constituents
- Curve fitting
- Commission Costs
- Slippage
- Things That a Backtest Doesn't Show
And a detailed example of a winning moving average system and backtesting resources!
The principles are thoroughly explained by Steve in video walkthroughs using backtesting software. Follow along and take your trading to the next level!
Your Instructor
After a lifelong fascination with financial markets, Steve Burns started investing in 1993, and trading his own accounts in 1995. It was love at first trade. A natural teacher with a unique ability to cut through the bull and make complex ideas simple, Steve took to blogging and social media by founding New Trader U in 2011.
Since then, New Trader U has attracted hundreds of thousands of visits a month, becoming the go-to resource for people wanting to build a strong, trading foundation. New Trader U offers an extensive blog resource with more than 3,000 original articles (Steve posts daily).
Asked daily if he could mentor, Steve realized that there weren’t enough hours in the day to give everyone the attention they deserved, so the eCourses and books were developed to help traders survive and thrive in the markets.
Course Curriculum
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StartIntroduction (1:59)
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StartModule 1-: Data Mining (10:19)
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StartModule 2- Returns (7:38)
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StartModule 3- Buy & Hold (6:06)
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StartModule 4- Winning and Losing (9:41)
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StartModule 5- Profitability (8:51)
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StartModule 6- Market Environments (10:39)
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StartModule 7- Goals (6:53)
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StartModule 8- Emotions and Stress (8:20)
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StartModule 9- Selection Bias (8:52)
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StartModule 10- Market Constituents (6:25)
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StartModule 11- Curve Fitting (4:04)
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StartModule 12- Commission Costs (5:53)
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StartModule 13- Slippage (3:19)
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StartModule 14- Portfolio Moving Average Backtest (11:09)
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StartModule- 15 Moving Average System Example (9:02)
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StartModule 16- What It Can-t Show (1:10)
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StartModule 17- Conclusion (2:38)
Get started now!
Frequently Asked Questions
Nature of Information Provided by Stolly Media, LLC on NewTraderU.com and NewTraderUniversity.com:
By accessing our websites or using our services, you understand that:
None of the content published on the websites or that is part of our services (including in any newsletter, chat group, or social media account) constitutes a recommendation that any particular investment, security, portfolio of securities, transaction or investment strategy is suitable for any specific person. To the extent any of the content published on the Website or provided through our services may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.
Neither Stolly Media, LLC nor the personnel will advise you personally concerning the nature, potential, value or suitability of any particular investment, security, portfolio of securities, transaction, investment strategy or other matter. Accordingly, please do not attempt to contact them seeking personalized investment advice, which they cannot provide.
The principals are active traders and engage in the trading of securities for their own personal accounts. The educational information should not be construed to imply any registration or other qualification. We are publishers and educators only.
Backtested results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under-or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown.
The websites may contain links to other external websites or applications (“Third Party Websites”). However, we are under no obligation to verify the accuracy of the contents on such Third Party Websites, and we do not endorse, warrant, promote or recommend any services or products that may be offered by or accessed through such Third Party Websites or the operators of them. Your use of links to Third Party Websites is at your own risk.
Stolly Media, LLC and the creators and providers of our services (the “personnel”) are publishers and are not broker-dealers or registered investment advisers.
The information provided through the Website and our services is intended for educational and informational purposes only and not recommendations to buy or sell a specific security.