Trading Software
This stock trading question about Trading Software comes from Kim-Sung J. who asks:
“I have developed trading systems using Bullcharts and Tradesim. I have tested the systems on All Ords stocks. I’m aware there are survivorship bias which I don’t know how to account for. My feeling is that the survivorship bias could significantly affect the test results and make it appear much better than real life. So my question is: how should I go about removing the survivorship bias from the tests? (There doesn’t appear to be any functionality in bullcharts or tradesim to do this. Is there another charting and back-testing software you can recommend?)”
The impact of survivorship bias will depend on the type of strategy you’ve developed and the rule of thumb is that it will always degrade performance. As such it’s best to define exactly what impact it will have.
Trading Software
The software we use and recommend is RealTest combined with Norgate Data. Therefore the two choices you have are:
- Purchasing RealTest, learn how to operate it, then program your strategy and test with Norgate Data.
- Outsource the system development to a third party or purchase a rigorously tested and validated system such as one of our Turnkey Systems.
If you are interested in learning the ins and outs of system development have a look at our course Beginners Guide to Building Trading Systems.
Have a question for the team? Drop us an email here.
