Tradinformed Excel backtest models can be used to test a huge range of trading strategies. They can be used to test stocks, currencies, bonds and commodities.
This article shows how easy it is to work with the spreadsheets and use them to test your favorite trading strategies.
If you are interested in purchasing any of the spreadsheet featured in these videos please go to this page: Purchase Excel Spreadsheets.
To support the information on this page a new Manual is now available. Download it for free from: Tradinformed Backtest Model Guide.
Step 1: Change the Historic Data
All backtesting is based on historic price and volume data. This historic data is vital, without this it is not possible to test how a trading strategy would have performed.
Because Tradinformed backtest models are built in Excel it is really easy to change the data to test different markets and timeframes. The video below shows three ways to import new data into the backtest model.
- Copy and paste directly from another spreadsheet.
- Reference another spreadsheet. Simply enter = and then click on the cell of the data spreadsheet.
- Use the Excel Data Import tool to get the data without even opening the data spreadsheet. Most spreadsheets are comma delimited.
Step 2: Add new Technical Indicators
The next step in setting up a backtest is to add some technical indicators. This might be traditional indicators like the Stochastic and MACD or patterns like the Harami and Double Top. A wide variety of Excel technical indicators are available in my eBooks; 21 Technical Indicators and 21 More Indicators.
In this next video I show how quick it is to add a new technical indicator into a backtest model. The key thing when adding a new indicator is to make sure the historic data columns are the same in both spreadsheets.
Step 3: How to Change a Trading Strategy
It is important for a trader to be able to test different trading strategies. In a Tradinformed Excel backtest the trading criteria are set using the formula =IF(AND(…). These formulas allow us to test multiple criteria and check if all of them are true.
In this video I show how to change the formula for the Entry to change the backtest. In this example on the Ichimoku I change the entry from:
- Long Trade when price closes above the Kijun Sen and Short Trade when price closes below the Kijun Sen.
- Long Trade when Tenkan Sen closes above the Kijun Sen and Short Trade when Tenkan Sen closes below the Kijun Sen.
Step 4: How to Add More Data to a Spreadsheet
Tradinformed spreadsheets can be easily altered to add different markets or test a different historical range. Firstly, copy the new data into the spreadsheet. Then copy down the formulas for the technical analysis and the backtest. This is done by highlighting the data to be copied and then double-clicking on the bottom right hand corner (see the video for a demonstration).
Finally, the results page needs to be updated to reflect the new data range. Simply make a note of the final row in the spreadsheet. Then use a find and replace to change the data range in the Results section.