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going from Stockfetcher backtesting to real market

post #1 of 3
Thread Starter 
Hi, I've been experimenting with SF and am perhaps ready to take the next step. Let's consider a simple filter, namely buy (momentum(21) has been increasing for 3 weeks and volume is above 25000) and sell (profit loss=1%,max days=1).

Are there brokers or software that could implement the filter in an automated fashion? Are the returns from the backtesting provided by stockfetcher an accurate assessment (to first order) if the aforementioned filter is automated via tradestation (or any analogous software)? I have heard of tradestation (pricey) and cool trade. Could anyone elaborate on some others or the pros and cons of the brokers mentioned.

Thanks.
post #2 of 3
I'm not familiar with stock fetcher, but one thing I would question is whether it suffers survivor bias, which is where your back tested system looks good because certain picks for a time period may not show up due to their eventual delisting and removal from the overall data set. I don't know if that is or is not the case here, just something to look into.
post #3 of 3
You need to be careful when back testing to make sure you'd actually be able to make the trades that are being simulated.

For example, the number of trades you can make per day would likely be limited because of commissions, the entry price may not be realistic because of volume, etc.
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