Amibroker is one of the best software we discovered that could actually help us improve our trading results. Amibroker is so powerful that you will immediately fall in love with it once you start using it. Today, we will mainly introduce the backtesting functionality of Amibroker so that you can start making money with it. Moreover, if you are interested in learning more about profitable trading strategies, make sure you read until the end.
What is Amibroker
Amibroker is a powerful tool for the system trader. Amibroker is a full-featured technical analysis & trading system development platform, with advanced real-time charting, portfolio back-testing/optimization and scanning capabilities. AmiBroker's robust system development environment allows us to find market inefficiencies, code the system and validate it using powerful statistical methods including walk-forward test and Monte Carlo simulation. Most importantly, Amibroker is one of the cheapest professional analysis software on the market.
#1 Why bother with another charting software. Backtesting
Amibroker is not just another charting software. Amibroker's best functionality is its backtesting feature. Backtesting is one of the most important skills you need to develop as a consistent trader. Backtesting allows you to visualize your trading strategy's effectiveness through historical data so that you do not need to waste time and money on Youtube guru strategies that do not work at all. Besides, the backtesting speed in Amibroker is insanely fast, the fastest in all the software we tested.
If you are not familiar with #backtesting we talk about it in detail in future articles.
#2 Detailed statistical analysis report
Evaluation is key to a successful strategy. Amibroker will auto-generate a detail report with important financial metrics. These statistics are crucial to understanding the performance of a strategy. In particular, we at #Billerikay love watching Sharpe ratio #sharperatio and Calmar ratio #calmarratio.
#3 Fool-proof data loader | AmiQuote
Being a systematic trader, acquiring quality data is extremely important. The built-in function of AmiQuote is super easy to use to download equity data from Yahoo Finance, Google finance, and more. This feature will ease a lot of frustration for beginners.
#4 Easy Programming language and helpful community
Amibroker uses their own language (AFL) for programming the backtesting strategy and other advanced usages. This language is relatively easy to learn. Beginner with basics programming ability should be able to pick up AFL in less than a month. Moreover, simplicity in systematic trading is crucial, because the less complicated your codes are, the less likely your program will run into random bugs.
#5 Ultra-high-speed optimization
Optimization is a process of finding the best parameters for a given trading strategy. Optimization is also important to help us learn if we have overfitted the strategy. For example, if most of the parameter combinations show better than benchmark positive returns, our confidence in the strategy's effectiveness should increase.
Since Amibroker is so fast in backtesting, it is also extremely fast in optimization. As the complexity of strategy increase, the time required for optimization will increase exponentially. Therefore, having a fast backtesting engine will improve our overall research and trading experience.
We are not affiliated with Amibroker; we truly believe Amibroker is an amazing tool for trading successfully. Try it out and share with us your trading success!.
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We are not financial advisors. Please do your own due diligence and investment research or consult a financial professional. All articles are our opinion – they are not suggestions to buy or sell any securities.