Search for “backtest”


Should you trade this portfolio? Interpreting Backtest Results

Guidelines and important metrics for portfolio backtesting

Congrats! You just ran your first backtest and made a bajillion dollars for your (simulated) portfolio! Should you go trade it? Try again for a bajillion-and-one? How do you know you have a good...

The Fastest way to Build your Own Trend Following System

Get your trading algo up and running in just a few minutes!

Would-be trend followers are frequently stopped by the inability to backtest strategies. Yes, you can use Excel (sort of) but it's exceedingly slow, cumbersome, and will likely require some ...

Test and Trade RSI Divergence in Python

Learn to trade multiple algorithmic divergence strategies with easy-to-follow code examples

Divergences occur when price and your indicator move in opposite directions. For example, you’re trading with the RSI and it last had a peak at 80, now it peaks at 70. The underlying security you...

4 Simple RSI Trading Strategies You Can Use Today

With complete backtests and code in Python

The Relative Strength Index (RSI) has long been one of the most popular indicators due to its versatility. It is most commonly used as an oscillator to find reversals in prices, but can also ...

Why You Need more Data than You Think in Your Backtest

How much time does a backtest need to be statistically significant?

How many years does it take before you can be confident in a trading strategy? Does one great year mean you have a tremendous strategy? Does one bad year mean you should pack it up and try somet...

What Everybody Ought to Know About Backtesting

All backtests are not created equally

Running a quick, vectorized backtest is a great way to get your head around a trading strategy or test a new idea. But you should never trade off of such a model if you want to make money. Inst...

4 Simple Strategies to Trade Bollinger Bands

Learn to trade this indicator with backtests in Python

Bollinger Bands have been a popular indicator by traders since they were invented in the early 1980’s. They’re calculated in four, easy steps and are intended to provide traders an idea of the ...

Testing Turtle Trading: The System that Made Newbie Traders Millions

Trade like a Turtle In 1982, a group of inexperienced traders were recruited to be a part of an experiment that would make many of them multi-millionaires. Richard Dennis bet his partner Will...

How to Build your First Mean Reversion Trading Strategy in Python

The beautiful thing about markets is they always move. They may not show  strong momentum or trends  at any given time, but that doesn’t mean you can’t make money off of a strategy. You can ride ...

How to Build Your First Momentum Trading Strategy in Python

Learn an algorithmic momentum trading strategy

Have you ever noticed the tendency for stocks that have risen to continue rising in the future? Likewise, a few down days seem to beget more losses. This is known as  momentum  and strategies tha...