Using the Back Tester

Back testing strategies will allow you to save time and from costly losses from implementing a newly conceptualized strategy in live trading. Back testing your trading strategies is crucial for any trader before you can start trading the strategy using a live account. With VAI’s back testing module, you’ll be able to analyze and further optimize your strategies. All you need to do before testing is to add a simple SIGNALS code within your VAI script.

To do a back test, click on the BACKTEST ICON on the Home Toolbar, found on top of the VAI window.

A new back test setting window will pop up and you will be requested to fill out some details for Vanguard AI to properly run it.

Once all the settings are in place, select a strategy to use by clicking on LOAD SCRIPT and click on the STOCKS TAB to choose a watchlist or individual stock to apply the script/strategy to.

Click OK to run the VAI Back Test Report.

Depending on how many stocks or how far back you’re back testing, it may take a while to do all those calculations. After doing all the calculations, VAI will automatically open up a new window that will display your Back Test Report.

Reading the Back Test Report

The back test report contains a lot of useful and helpful features to help you understand your strategy dynamics, you can find the definitions here.

Adding the SIGNALS script.

The SIGNALS script will allow the back tester to know which variable to use as a buy and sell signal. You can find the guide here.