Whether you trade on fundamental information or not, it is still important to know how to trade with technicals, because you will have to look at the chart the moment you buy and sell stocks.
However it’s impossible to check with your hand all the entry timings that are generated by the technical analysis. So using computer program is very practical, but there aren’t many of them who are good at it, and I think spreadsheet is a potential alternative, because it’s easier to operate than computer languages.
Here is the tester I created. With this, you can test a strategy with Moving average’s crosses(entry with gold cross and exit with dead cross). If you don’t know what it is please google it.
All you have to do is to put some numbers you like in those two boxes, and click on “RUN”
Then, the spreadsheet automatically simulates all the trading points generated by the strategy, and show you the results, all the transactions in it and stuff. It’s important what kind of result you get, but I would like you to pay attention to “drawdown” and if you are a beginner you must.
It's not a good idea to trade without knowing how much money you have chance to lose with the strategy you are going to stick to. By knowing this you can truly control your risk and money. And a lot of people say that it’s crucial to control your money in investment, but they rarely talk about drawdown let alone “how to figure it out”.
In the different sheet you can see all the functions with which I use to create this simulation. You can take a look at it freely from a link below and even download it onto your PC.(If you want to use it, I think you need a Google Account)
This one is very basic, but I will create more sophisticated ones if you have any requests. So if you have any, give me some comments or e-mail me.
And please click on the bottom below so that you can push me to the upper rank in the blog competition I join.
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