Very basic question about backtesting

Very basic question about backtesting

Ira Fuchs
2013-11-26 05:42:15

I have not used Quantshare but I am trying to understand what Quantshare can (or cannot) do. For example, if I wanted to test a potential (simple) trading strategy which had the following characteristics:
if a stock or index opens higher than its previous close what is the probability that it will end the day higher than it's opening price.
Could Quantshare do this, and if so how does one set this up?

QuantShare
2013-11-30 10:56:42

Here is how to plot that probability on a chart:

rule1 = open > close[1];
out1 = close > open;
pos1 = sumif(rule1, out1);
neg1 = sumif(rule1, !out1);
res1 = 100*pos1 / (pos1 + neg1);
plot(res1, "");

(Right click on a chart's pane, select "Edit Formula", type your formula then click on "Update Graph")

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