Unlock the Power of Backtesting: A Step-by-Step Tutorial for Traders, Part 1

I'm starting to create the series about how to leverage the power of your computer, using large datasets and data manipulation libraries like pandas to perform large scale backtesting like I show on this channel. For part 1, we'll start with how to download historical price data, how to add technical indicators and strategy rules, and how to use that to find entry points (buys). I hope you'll join me for this step by step tutorial, and as always I appreciate your support.

Remember nothing here is investment advice and I am not an investment advisor. I do not advocate for or against any trading or investment strategy.

Referenced video:

Submit a strategy for me to backtest in a future video:

[stanverhoeven]

I have actually started learning Python / Pandas after seeing your backtests. This is such a great tutorial series to help! Thanks a lot!🙏

[AaronOak]

Criminally underrated channel. Useful content, great presentation. Please keep up the good work, Sir.

[Cheburator]

I just discovered your channel. I am relatively new to programming and you helped me a ton. Sad to see that you stopped posting. You have one of the most unique content in the field.

However, I just wanted to thank you for immense help

[totalizer]

This is the coolest thing i ve seen in a while. if i knew how to code i would test strategies 24/7

[descy]

This video is a gold mine. I started backtesting with quantconnect and with the pine editor from tradingview but both of them had their issues... Thank you so much!

[ViSaint]

Can't wait for the next part! Thanks for sharing

[alfredchabdarov]

BEST! Nice video. And here I was a few years ago doing it all manually and using my on commands for all of it... Thank you!

[lucyalfaro]

Espero aprender mucho de tus videos, por favor continúa siendo el maestro que eres hoy....

[timurzhaizhumov]

Please upload continuation ASAP!! Great work

[DawidGdybadz]

thank you im a beginner in python but I need to start to backtest my strategies its very helpful for me to look at your work

[russnagel]

Great video. I am learning python for backtesting. Looking forward to the next video.

[zcodec]

Thank you for this! Been using python for backtesting and still studying. This helps a lot.

[Quiexotic]

Thank you for this video. I always wondered how you do it!

[sankargovindarajan]

Thank you for educating, Learning by seeing your videos, but still very hard since I am from non tech guy, Is it possible for you to back test for the system I am looking to back test it . Thank you

[driss]

You really inspired me to start backtesting strategies and trying some algo trading!
I'm still working on the data collection, and it's not a trivial project.

One issue that pops in my mind is when we backtrade with longer time frames, we can only enter a trade at the close of a candle.
Meaning for daily TF we are testing the trade at the candle close, instead of entering the trade whenever the live chart passes a certain treshold.
Is this a valid concern? Should I try to "merge" the lower timeframes in some way to pick better entry points for the testing?

[anapoff]

Fantastic content. Any chance you can show how to backtest options? I’m using only /MES doing Long term 112 strategy 120 dte. Stop at -200%, PT 100% or when max profit is achieved if in the tent at expiration.

[Muhammadxuxix]

could you do a backtest XAUUSD on the OANDA server using multiple ema 20 on (1-hour tf, 4-hour tf and daily). the entry rule is when the price is emerging up from the bottom of 4H ema and the 1H ema < 4H ema < daily (the short rule is the opposite). the SL is the last low or the 1.6 ATR. The TP is the last high of the 30-minute candle. when the order is on 1R, cut half of the order size. Thank you.

the other thing that I am curious about is, what kind of indicator do you suggest to determine the trend of the market (trending or sideways), it will really help if you can identify and switch the strategy mode.

[Ro-mclx]

This is fantastic & just what I needed :D. Where can i learn a little bit more about how to use colab? And I'll be checking your other backtesting video, thank you.

[christianmartin]

Awesome work. I was wondering if it is possible to look at the code you are backtesting with (with graph and stats)?

[sfhz]

Awesome video! Any leads on where can we get the data on lower time frames such as 5, 15, 30 and 60 minutes?