Free charts and backtesting of over 500 stock market indicators, including breadth, put/call ratios and volatility

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There has always been an aspiration to do more things with the data on this site. The inspiration to implement the first of these things, a backtesting engine, comes after being introduced to Dr Brett Steenbarger’s insightful approach to improving trader performance, which includes investigation of market history. In Chapter 10 of his excellent book, he illustrates with a detailed example how one can use Excel to find market patterns that can help you generate trading hypotheses. The book also provides other highly effective methods for enhancing trading psychology and performance that are applicable to all styles of trading.

The backtesting engine released today allows you to measure the returns of any index following the detection of certain indicator conditions and adds a layer of objectivity that is not easily experienced by just looking at the charts. As shown below, the results of a backtest are provided as a textual summary and as a detailed table full of relevant statistics and mini-graphs of index returns following each event. The maximum lookback period for now is 3 years, but it will be increased to 5 years in a later version. Since 3 years isn’t that long a backtesting period, backtests involving short-term indicators will yield more meaningful results than those for long-term use.

There are plans to introduce subscription-based access to parts of this website for a low monthly fee. These will include; 5-year charts, 5-year backtesting and data access. In short, everything that has been free before today will remain free.

Give the backtesting tool a try and see what you can come up with. Your feedback and suggestions are welcomed.

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