Know What Is Backtesting (Part I)

By Ahmad Hassam

Backtesting any trading strategy allows a trader to simulate its expected performance using historical price data. With Backtesting, traders can actually test their trading strategies and know how well they would have done if executed in the past.

What type of a trading strategy can be backtested? Any trading strategy that does not have any ambiguity in its rules can be backtested effectively. Example of a simple trading strategy that can be backtested can be as follows.

When the DMI+ is above DMI- and the MACD histogram has crossed above the zero line, go long when the 5 period moving averages has crossed above the 20 period moving averages.

When DMI- is above DMI+ and the MACD histogram has crossed below the zero line, sell short when the 5 period moving averages has crossed below the 20 period moving averages.

However, using the past price data to simulate future results often misleads traders into thinking that their backtested results will also give similar results in actual real time trading. This one example is just meant to illustrate that any trading strategy having clear cut rules can be backtested with the historical data.

So you should not fall into the trap of thinking that Backtesting may be a perfect method for identifying the most profitable trading strategies. Many potential factors can and will make hypothetical performance and actual performance differ significantly.

Market fundamentals keep on changing. This makes a trading strategy that may have worked very well over the past three years work in an entirely different manner for the next three years as the market changes and evolves. One of the most important facts that you should always keep in your mind is that market changes considerably overtime.

Often technical indicators that have been giving profitable signals in the past are subsequently unable to replicate their performance in the future. This may frustrate you. But this is exactly what makes trading a challenging endeavor.

Secondly in term of trade execution, a trading strategy in real time may be much different from the way the trading strategy behaves on Backtesting. These differences can potentially skew the results.

However, you should still not underestimate the benefits of Backtesting. Backtesting can provide a trader with a reasonable expectation of the trading strategy's potential worth and usefulness. Backtesting is still the best available method for evaluating a trading strategy without actually trading it in real time environment.

Backtesting can be done by using two methods. The first one is the automated Backtesting. This is the most popular method. Automated Backtesting entails using a specialized program. The trader inputs the specific rules and criteria for the trading strategy into the Backtesting program.

An entire picture of the past performance is created with the help of that software program. The software automatically applies those rules to the past price data and tallies the past hypothetical profits, losses and other information. - 23305

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. Try This Cash Printing Forex Signal Service From Heaven! First practice on your Forex Demo Account!

Properties For Sale In Singapore

By Billy Chen

Do you have a property in Singapore and want to sell? Thinking about the steps you should undertake to sell property in Singapore? If the answer to these questions Yes and the best way to do this is to a real estate agent or broker who will help you sell your property to find Singapore.

You can get useful information from them regarding the property for sale in Singapore.You will find many real estate agents or agencies in Singapore and you can choose that agent who offers the best service in the industry.

Taking the help of such real estate agency or agents, sell your property irrespective of the kind of property it is that you are selling.The real estate agency or agents are kind of expertise people who deal with buying and selling of properties.

The real estate agent deals in property such as apartments, condos, bungalow, office building, warehouses, storeroom, etc.There is no need for you to take the help of two or more real estate agent.If you have decided to sell your property then make sure that you employ the assistance of one real estate agent only.All you need to do is do some research before you begin to interview people.

You can make a list of a few real estate agencies and after you find out more information about each of the agency, you can select one real estate agency to handle your sale of Singapore property. While you are deciding on the real estate agent for selling your property, you may want to consider certain factors before you make your decision. So do take into considerations those factors.

You should advertise in the real estate agent or promote their services in a number of publications. In this way, should be more attention paid to the agency, and if it more attention, then chances are your property would be sold to raise it. Probably the best way to find a good and reliable real estate agent to sell your property, is to ask your friends or acquaintances transfer.

How fast can sell their property, depending on how much effort you make to the distribution of your property. Do your homework well and you can be sure that you will be able to quickly sell their property. - 23305

About the Author:

Want to find out more about Hot Victory , then visit Hotvictory site on how to choose the best Singapore Properties for your needs.

The Currency Exchange Markets

By Rueben Gomez

The trading of currencies on the currency exchange is what is well-known as forex trading. To those that have never traded currencies, forex trading may seem discouraging. Fortunately, forex trading is a uncomplicated procedure with mechanics that are effortlessly understood.

The foreign exchange market is the worlds major trading market. 2 trillion American dollars are traded every single day.

The currency market is a worldwide market rather than centralized. It sees the trade of every single established currency in the world. Some well-liked trading platforms include metatrader 4 as well as different java based trading platforms.

A true 24 hour market, trades can be made at any time appropriate to your needs. Though it should be noted that trading is not allowed on Saturdays and Sundays.

Domestic political and economic factors greatly affect the value of a country's currency. Since stability plays such a big role in the forex markets, the top traded countries come from stable countries such as America and Europe.

Traders constantly look for ideal price points to sell or buy currency pairs. Trading is character based, as all traders have assorted levels of risk aversion and skill sets. Some enjoy taking risky short term trades while others opt for conservative long term trades.

Forex trading has the promise for big profits. Traders are also given huge leverages by their forex brokers. The higher the leverage, the more you can borrow on any one trade.

The currency market is established for its high volatility. Due to its unpredictability, huge profits as well as losses are possible over a short time span. There are no commissions charged, you pay what is well-known as the spread. The currency pair is the determining factor in the spread paid. The general rule is the higher the volatility of the currency pair, the higher the spread.

The main drawback to forex trading is of course the risk involved. Traders often utilize money management strategies to decrease these risks. Opening a free demo account is the best way to get a feel for currency trading online. - 23305

About the Author:

Forex Online and Forex Trading Overview make up two of the key areas that the author is dedicated in. Rueben Gomez is a Stock and Currency Trader with years of familiarity in this fields. When he is not trading, he operates an online forex portal.

Make Money from Successful Property Investment

By Billy Chen

For the property players, property investment is no doubt an engaging and profitable undertaking. But often we hear investors lamenting about their heavy losses and missed opportunities. So how could we make sure we can profit from it. Worry not; in the text that follows we are going to unveil the tips for successful property investment.

1. Set Long Term Perspective ... Risk Level Make up your mind on long term objective and risk exposure when investing in properties. After that, make sure everything you do is consistent with those pre-set objective and risk. Do not ignore risks no matter how enticing the rewards are. Remember these two parameters should always work in pair.

2. Don't Follow Advice Blindly Don't be taken in by market rumors, gossips or expert opinions too readily. You should only invest in properties that you are familiar with or at least backed by your research.

3. Don't Wait for Good Things to Happen Make it a habit to constantly look out for new opportunities, instead of waiting for your existing investment to make good. Always explore your options and you may find viable alternatives. If you are hoping just on the reward from that property you invested, you may not be motivated enough to search for other fabulous bargains.

4. Have Faith but Stay Realistic Your investment into property market is not going to be all smooth sailing. As with anything traded on the stock exchange, properties' prices would experience fluctuations through out its life. Just accept this as part of the package and always brace yourself as the business climate changes to worse. If you trust your research work, you may choose to stick to your investment strategy but if market conditions continue to plummet, it maybe worthwhile to evaluate the situation or even call it quit where necessary.

5. Aware of the Risk Risk is always an inescapable parameter when it comes to investing, property investment included. Get to know what risk is, conscious of the risk associated with any property you are interested in. Make risk works for you.

6. Be Market Aware Understand the ways to engage the market, players, speculator, owners and users. As you feel you way around, try to expand your network carefully. Knowledge on the investment subject and the market will help. When extra help is required, financial advisers are on hand to dispense expert opinions on the market operations and conditions. And they can suggest appropriate solutions as well.

7. Don't Sit on the Fence Often we can be a tad too slow to react to new opportunities. This is probably due to the overly cautious approach on our part. To remedy this problem, you must work to strike a balance between action and caution. There are a number of experts offering services to address this problem. Open up to them and don't be afraid to ask questions, it will help them better understand your caution. When you chanced upon a property, study it thoroughly and check back with your objective and risk appetite. With all requirement satisfied, you will need to act decisively at this point.

8. Profit from Your Mistakes Mistake is an integral part of property investment. As business climate is so fluid, no investor can claim to have foreseen all major developments in the market. But don't let this excellent learning process goes to waste. As you become more articulate with the best practices and work to minimize your risk exposure, your chances of mistakes ill get reduced significantly. As a final reminder, make it a practice to review your risk profile from time to time for the simple reason that this business is just too dynamic. - 23305

About the Author:

Looking to find the best deal on Investment In Singapore , then visit Hotvictory Site to find the best advice on Investing Property In Singapore for you.

Selecting a Managed Forex Firm to Work With

By Bart Icles

Interested in forex trading but you do not have enough time to spare for managing your investments? You do not have to worry about missing out on one of the most lucrative forms of trading because these days, it is very possible for you to participate in foreign exchange trading without having to actually manage your assets. What you need is a managed forex trading account. This type of forex account allows you to entrust your investments to brokers or investment managers who will do all the trading for you. This simply means you can still participate in forex trading without having to be in front of your computer the whole day or the whole night.

Usually, managed forex accounts are based on hedge fund models, allowing investors and account managers to trade millions in client funds. There are lots of companies that offer service on managing forex trading accounts and they pretty much offer the same kind of packages. One thing you should keep in mind in selecting a forex account manager is to check if they set the preservation of the funds of their clients as one of their primary concerns. It is important that give priority to this because you will be leaving the future of your investment in their hands.

It would be to your advantage if you work with a firm that understands how challenging it is to get back from losses incurred in trading foreign currencies. The firm that you should work with is one that understands the impact of losses to your financial position, and at the same time, one that can help keep your trading problems under control. In doing so, your forex money manager would be able to keep a good watch of the market so he or she can identify different opportunities for generating stable profits.

It is also important that a managed forex firm has live traders who can stringently manage your profits and losses. They should be able to identify the best opportunities for you to maximize your trading profits. The firm you should work with should be one that can set realistic investment goals for your account, and one that is licensed and has a reputation for reliability.

Your managed forex account manager should be able to offer you a stable direction for you investments. In this manner, you can truly get your share of the profits offered by the lucrative yet volatile world of foreign exchange trading. - 23305

About the Author:

Forex pips start with a desire to learn and a drive to become a great trader. Even forex made easy takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.