"Backtesting" vs "Backtesting with Historical Data"
-
What is the difference between "Backtesting" and "Backtesting with Historical Data".
All the options are exactly same on both screens.
-
Any response PRASHANT JI ?
-
Backtesting: This method tests a strategy using past data, but it always uses the current Nifty 50 stocks, even for previous years.
Backtesting with historical groups: This method tests a strategy using the actual Nifty 50 stocks from each year. For example, if you're backtesting from 2018, it will use the Nifty 50 stocks that were part of the index in 2018, and so on for other years.
-
Then why this "Historical Group" is not available in Backtesting for "Momentum Investing". I wanted same Historical Group for "Momentum Investing Scanner" so that I could SIMULATE with SURVIVALSHIP BIAS Free Return.
Is it possible PRASHANT JI?
-
@Kuldeep Mishra did you find any disrpancies in backtest result check out the charts when you do see dtb and dbs in backtest result they both look diffrent
-
@Nishant Paul Most of the time Backtest Results are inaccurate. In Backtest, when I create 10 or 20 stocks portfolio, the highest Gainer and Highest Loser doesn't follows the Specified Entry and Exit Rules. Where the stock should Exit, it doesn't and the outcome becomes misleading. Plus, how the Backtest system is selecting Stocks for portfolio, is also unknown. That's why, sadly, but I will have to switch to Amibroker for Accuracy of Backtesting.
-
@Kuldeep-Mishra ... Agree. I rely on manually doing the backtesting for this very reason. Definedge Backtesting tool is still not reliable.
