Hi Guys
Is their a simple way I can test a trailing stop loss strategy ? I will manually enter the trade(Historical data), then I want to test different trailing stop losses based on % of ATR.
It´s basically a trend following system.
Hi, simple way is creating a robot and back testing, but if you have discretionary strategy you will have problem with this. Regards Greg
Yes the entry is somewhat discretionary, so I don´t think that a robot will work. Basically I will manually go back throw the charts and manually enter the trades. But thanks for the advise.
Just to clarify what I am trying to accomplish:
I want to back test a system. The entry is a crossover of moving averages with some filters, somewhat discretionary. I will enter the trades manually. Now what I really want to test is to test the strategy with different trailing stop losses based on ATR and different targets.
A stop-loss order is an order placed with a broker to buy or sell a specific stock once the stock reaches a certain price.
Indeed, it is extremely important to pay attention to testing first, and then only using it. This can significantly help the trader.
Unless you want to write your own back testing software or buy one you can do it manually as follows…
Get the chart data, look at it and plot your entry point. Note your stop loss position. Now look at the next candle…
If the next candle goes past your stop loss then you stopped out. Otherwise look at the highest/lowest value of the candle and adjust your stop loss accordingly. Repeat for next candle. If you want a more accurate stop loss check then go to a lower timeframe and run through those candles adjusting the stop loss for each candle and checking to see if it was triggered.