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Test Buy & Sell Strategy
Test a buy and sell strategy performance based on technical indicators
There exists a lot of trading strategies that are based on technical indicators. Here are a few examples (we assume that a reader may be familiar with some of them) Here are a few examples:
MACD: Buy when the divergence line of MACD becomes positive and sell when it becomes negative.
Fast and Slow Stochastic Oscillators: Buy when a %D line is crossed by %K line on and upwards direction of %K, Sell when a %D line is crossed by %K line on a downward direction.
Exponential Moving Average: Buy when exponential moving average difference (periods1<periods2) becomes positive and sell when it becomes negative.
RSI: Buy when RSI absolute value has reached 30 and sell when RSI absolute value has reached 70.
Ashkon Stock Watch allows to model these trading strategies by placing buys and sells on the historical data chart. You may go through the chart place buys and sells when you think that the Buy or Sell condition of your strategy occur and see the performance of your strategy.
Click left mouse button on the chart area. A vertical line will appear and on the top bar you will see Open,High,Low,Close for the day that you've selected. Move the vertical line by moving the mouse on through the chart area with left mouse button pressed. Select a day when you think you have Buy conditions for the security according to the technical indicators values. Click right mouse button and a popup menu will appear. Select Record Buy. This will record a Buy transaction. You may also use and buttons on the toolbar to record transactions.
The list of the transactions is recorded by the software and may be displayed under transactions panel on the right side from the chart (Hyp Q5). You may also see the history of the recorded transactions in a text format(Hyp Q6)
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