Contents:
- Prepare Charts and Studies
- Create Buy/Sell Signals
- Run The Backtest
- ◀️Previous Module: @Backtesting Introduction
- ▶️Next Module: @Export Bar and Study Data
Follow Along a Backtest Using Provided Chartbooks
Prepare a Chart, Create a Signal, then Run a Backtest
For additional information on Auto Trading signals CLICK HERE.
Backtesting Cheat Sheet:
- Prepare chart(s) for backtesting
- Formulas in the Buy K3/Sell M3 cells
- Disconnect data feed then run Autotrade Replay Backtest
CRITICAL:
- Title Bar: Trade > Auto Trading Enabled - Global
Prepare Charts and Studies
- Open the chart or charts to be backtested, ensure data on startup has finished downloading, and the desired studies have been applied (example: moving average 1 and moving average 2)
- Title Bar : Analysis > Studies > Spreadsheet System for Trading > Add
- If no backtest trading is desired, and user only wants to view or export signals, then use the Spreadsheet System/Alert study instead
- With the Spreadsheet study selected hit Settings from the Chart Studies window
- Configure Input Values as needed, and under Spreadsheet Name give the sheet any name. For an example of settings click the arrow below
- Close the Chart Studies window
Other settings within the Title Bar: Chart Settings window to consider changing:
- Data Limiting Tab
- Days to Load for Intraday Chart Type: [Desired days to backtest]
- Symbol Tab
- Continuous Contract: Continous Futures Contract - [User rollover of choice, volume or date based]
Create Buy/Sell Signals
This example creates a BUY when price is greater than EXAMPLE STUDY 1 and SELL when below EXAMPLE STUDY 2. When conditions of the AND formula occur, the value turns to TRUE (or 1).
Current Row: Row 3 is main row for formulas that automatically copy logic to cells below
Buy Column: Cell K3
Sell Column: Cell M3
EXAMPLE STUDY 1: As Cell AA3 of spreadsheet
EXAMPLE STUDY 2: As Cell AC3 of spreadsheet
Last : Last traded price of most recent row. ID0.SG4 = Cell E3 of spreadsheet
Spreadsheet: The Spreadsheet created from steps above for Alerts
Usually using 1 or more studies a signal is derived. To begin:
- Add any studies to be used for signals (Example: Moving Average 5, Moving Average 21)
- Open the recently created Spreadsheet from the above steps
In cell K3, click to edit cell and create a BUY signal:
=AND(E3>AA3,E3<AC3)
In cell M3, click to edit the cell and create a SELL signal:
=AND(E3<AA3,E3>AC3)When either of these conditions are TRUE, the cell will return a 1. This triggers a buy or sell signal.
To back test simulated trades using these signals, proceed to the next step.
Run The Backtest
Initial Preparation:
- Trading is UNLOCKED
- Configure the Trade Order Window. Stop loss and targets if desired. Attached orders are checked. More info on the Trade Window HERE
- DISCONNECT from the data feed (Title Bar: File > Disconnect)
After the steps above have been followed it’s time to run a backtest:
- Title Bar: Trade > AutoTrade System Replay Backtest
- Replay Window pops up, change the settings:
- Charts To Replay: All Charts in Chartbook
- Replay Mode: Accurate Trading System Back Test
- Speed: 100000
- Set Date to desired date and time
- Press Play
Results can be found:
- Title Bar: Trade > Trade Activity Log > Statistics menu
Note: For a full walkthrough of auto trading in Sierra Chart CLICK HERE
◀️Previous Module: Backtesting Introduction
▶️Next Module: Export Bar and Study Data
Back To Handbook Home
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