I have added the following section to the backtesting methodology post:
The backtesting software used for these tests allow split adjusted and raw historic data to be used together. One important point is one should use raw, unadjusted data to calculate entry and the number of shares that are purchased and split-adjusted data to calculate returns. If split-adjusted data is used for entry, it would reflect you purchasing many more shares than the funds allocated per trade would permit at that time. CSI is the data vendor, backtesting software is TradersStudio by Murray Ruggiero.
Wednesday, March 12, 2008
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