Sample Size and Diversification
Author: Ultrasuppa
Creation Date: 10/8/2019 1:58 PM
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Ultrasuppa

#1
Hello
Would anyone help me on finding a good methodology for sampling my trades as a matter of determining significant averages com performance indicators?
I do understand that it would be better to test my trading strategy across different issues and markets.
How far should I go? How broad should be my research (backtest)?
Kindest Regards
Fabiano (Brazil)
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Cone

#2
Hi Fabiano,
Those are some good, but open-ended questions. Here's a start at some answers.

QUOTE:
a good methodology for sampling my trades as a matter of determining significant averages com performance indicators?
Try the Analysis Series visualizer. Install Extra Performance Visualizers, launch Wealth-Lab, go to Preferences (F12) > Performance Visualizers, put a check next to Analysis Series, and then open your strategy for analysis. Learn more about it in the User Guide > Preferences > Performance Visualizers > Analysis Series

QUOTE:
How far should I go? How broad should be my research (backtest)?
As far and broad as you need to go to be comfortable with risking money on your strategy. It's easy to get data for World markets using the Yahoo! Provider. If you trade U.S. or Australian markets, I'd also recommend using Norgate Data whose add-in allows you do backtest without survivorship bias. See Wealth-Lab's What's New Home page for the announcement and links.
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Ultrasuppa

#3
Thank you!!
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