Strategy Backtest
A strategy backtest is the process of evaluating a trading strategy using historical data to see how it would have performed in the past. This helps traders and investors determine whether a strategy is profitable, how much risk it carries, and whether it should be refined before using it in live trading.
Key Metrics:
- Strategy – The name of the strategy being tested.
- Day Counts – Indicates the number of days the strategy was active or how frequently it triggered trades.
- Winning Position – The proportion of winning trades taken by the strategy.
- Losing Position – The proportion of losing trades taken by the strategy.
- Total Return – The overall percentage return generated by the strategy during the backtest period.
- Risk-to-Reward Ratio – The ratio of potential reward to risk, helping assess if the strategy’s return is worth the risk taken. Higher values generally indicate a better risk-adjusted return.
- Maximum Drawdown – The biggest loss (peak-to-trough decline) the strategy experienced before recovering. A lower drawdown is generally better as it indicates stability.
- Owner – The person who created the backtest (e.g., Pradip Dahal).
- Actions – Options to View or Edit the backtest results.
Editing a Backtest:
If you click the Edit option, you should be able to:
- Modify the strategy – Change the trading strategy type (e.g., switch from BBreakout to ParabolicSAR or vice versa).
- Adjust Parameters – Update inputs like stop-loss, take-profit, or risk-reward ratio.
- Save Changes – Once saved, the system will update the strategy details.
- View Updated Backtest – The backtest results should refresh, reflecting the new strategy’s performance.
Strategy Types:
- Bollinger Band Breakout (BBreakout) – Buys when the price breaks above the upper Bollinger Band and sells when it re-enters.
- Parabolic SAR (Stop and Reverse) – Uses the Parabolic SAR indicator to determine trend reversals.
Stock Screener
A Stock Screener is a tool that helps traders and investors filter and analyze stocks based on specific criteria.
Stock Data Fields:
- Stock Symbol – The ticker symbol of the company (e.g., ACLBSL, ADBL, AHL).
- Opening Price – The price at which the stock opened for trading.
- Previous Close – The price at which the stock last closed before the current trading session.
- High Price – The highest price the stock reached during the trading session.
- Low Price – The lowest price the stock traded at during the session.
- Closing Price – The last traded price of the stock before the market closed.
- Date – The date of the stock data.
- View Option – Possibly a button to view more details about the stock.
Company Analysis Page:
After clicking the View option in the Stock Screener, you can see a detailed company analysis page.
Company Valuation Metrics Chart
Displays financial metrics such as:
- EPS (Earnings Per Share) – Blue Bars
- Price-to-Book (PB) Ratio – Red Line
- Price-to-Sales (P/S) Ratio – Orange Line
- P/E (Price-to-Earnings) Annualized – Green Line
- Time Period – Covers multiple quarters from 2080/81 to 2079/80 (based on the Nepali calendar).
- Trend Analysis – Shows how financial ratios and earnings have fluctuated over time.
