| The Art of Properly Backtesting |
| News - Financial News |
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--(www.FinancialNewsUSA.com)-- 07/01/2009 - Investing Strategies industry news provided by Financial News USA. For those of you who enjoy backtesting, or for those of you who are just learning how to backtest, I'm going to give you a simple test to run over the weekend. What I'd like you to do is to run the following test and send me the test results by Sunday night. This includes the number of trades, the % correct and the average. gain per trade. Here is the test. You'll test this on the SPY going back to January 1993. The SPY is above the 200 day ma. If the 2 period RSI closes under 25 two days in a row, buy 10% of a position on the close of that second day the RSI under 25. If at any time you're in the position, and it closes lower than your original buy price, buy 20% more. If at any time you're in the position and it closes lower than your previous buy position (the 20% position) buy 30% more. If at any time you're in the position and it closes lower than your previous buy position (the 30% position) buy 40%, more getting you to a full position. [Read the full article] About Financial News USA Financial News USA is a Next Generation Financial Communications firm focused on the distribution of market moving news. Financial News USA has developed leading edge e-publishing tools including programming proprietary RSS feeds and enabling open source press release publishing across its network. Financial News USA has been aggressively expanding its news distribution network by targeting direct feeds to financial news and data providers such as FinancialContent, Yahoo (NASDAQ: YHOO), among others. Financial News USA offers a free news feed available online (www.financialnewsusa.com) to websites and financial services looking for content and for individual investors looking to stay informed on the financial markets. Financial News USA and its affiliates charge each client cash for news distribution and may take an equity position in the companies mentioned herein, please visit the disclaimer at www.financialnewsusa.com. 
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