Thinking Stuff's ATM

Automated Trading Machine (ATM) makes it simple to remove fear and greed from your trading. Automated trading is no longer just for the rich or nerdy. Our revolutionary software runs on your computer, using your trading rules, but none of your emotions. There's just one requirement - you know how to use a mouse.  Learn more...

Thinking Stuff's ATE

Automated Trading Execution (ATE) is where we run your trading systems for you on our servers. Your system can be exported from ATM, or written in plain English and we'll make it for you. We'll even backtest and suggest improvements if you want us to. This service essentially automates your automated trading.  Learn more...

Thinking Stuff's Groups

Join a group of like-minded individuals, and help each other to trading success. Once you join a group, you will have access to that group's trading systems, ideas, and feedback. And please contribute your own knowledge as much as possible. Or contact us to start your own group.  Learn more...

The Problems With Backtesting Wrap-Up

The holy grail of backtesting is to get it as close as possible to real life trading. Should you have true and accurate tick data, backtesting can be very close to reality. But, most people have just daily data. Sure we know the open, high, low, and close, but assumptions need to be made about what happened during that day. As long as your assumptions are reasonable, and lean more towards the pessimistic than optimistic, then accurate backtesting can still be done.

Inaccurate backtesting is a waste of time. And will probably end up a waste of your money, too.

When we have accurate backtesting, we can start to filter the good trading systems from the bad. And then start trading the good systems in a demo account. Testing your system in a demo account requires no assumptions. Do well there and you should do well in real trading (forgetting for a second about trading psychology and emotions and all that, if you're trading manually).

Our automated trading machine of course takes into consideration the issues highlighted in this series. Download it and give it a shot :-)