TradeSim

TradeSim is a super cool trading simulator and back tester that works with Metastock. It gives you a realistic way to test out your trading ideas without risking real money!

The Power of TradeSim

This app is the first of its kind for Metastock®. It can quickly back-test and check how well a trading system performs across many securities. With TradeSim's awesome data processing, you can see how your trading strategies would have done in the past within just minutes! It’s like having your own time machine for trading.

Understanding Your Trading System

Your trading system usually includes things like entry and exit triggers, prices, and an initial stop loss. These five points help shape your overall strategy. But here’s the catch: if you use Metastock's built-in tester, it only looks at one security at a time and sticks to one position size with fixed starting capital. This means you might get a pretty skewed view of how well your system is really working.

Why Single Security Testing Can Be Misleading

When you only test on one security, you're missing out on a lot! A typical trading system often involves different securities from various industries. By limiting yourself to just one, you'll end up with unrealistic results that don’t reflect real-life situations.

The Issue with Limited Trades

If you're only testing one security, you might only end up with around twenty trades or so. That’s hardly enough to really evaluate how good your system is! Statistically speaking, that doesn’t give you a clear picture at all.

The Need for Better Position Sizing Models

Another problem? If you're stuck with limited position sizing models during testing, it could lead to evaluations that aren’t ideal for the strategy you're checking out. You need flexibility to really find what works best!

If you’re ready to take your trading game to the next level, check out TradeSim here!