FAQ

BackTesting Report In General

What is BackTesting Report?

BackTesting Report began as a series of reports on the historical performance of technical indicators.  It has since grown to include additional educational videos and software for understanding the technical indicators, as well.

What is the Mission of BackTesting Report?

To help you create a working strategy of your own by providing insight into the usage and back tested performance of technical indicators.

Who produces BackTesting Report?

Jackie Ann Patterson is the Editor of BackTesting Report.  You can read more about her here:http://www.backtestingblog.com/about

What type of people benefit from BackTesting Report?

BackTesting Report is created especially for the average investor or trader in the US Stock Market.   It has sections for Swing Traders (2 day horizon), Position Traders (4 week horizon), and Active Investors (1 year horizon).    You need to understand what stocks are, how to enter orders at your broker, and have a desire to learn to apply technical strategies.    It helps to have some background knowledge of technical indicators.  An open mind to see what really worked and what didn’t is an absolute requirement.

Is BackTesting Report for day-traders?

BackTesting Report relies on end-of-day data.   Day traders could use the results of BackTesting Report in three ways:  1) to understand the longer-term trends within which they operate on a daily basis, 2) to see how trading works for people who aren’t glued to the screen all day, and 3) applying the backtesting results to shorter timeframes than they were originally intended.

 Is BackTesting Report just for mechanical traders?

BackTesting Report can help discretionary traders and investors as well as mechanical traders.   So far we have yet to come up with a fully mechanical strategy, but that is a reasonable goal.   In any event, discretionary traders use well-defined indicators and strategies too.   Its useful to everyone to know what has worked in the past and what didn’t.    In fact, it may be even more important for a discretionary trader to fully understand the nuances of the track records of the indicators they rely upon for insight into the markets.

Can Buy and Hold Investors use BackTesting Report?

Definitely.   Even if you never have any intention of selling, you can still benefit by applying a tested strategy to pick a good time to buy stocks.   I encourage all Buy and Hold Investors  I encourage all Buy and Hold Investors to also read the issues about exit strategies and sell signals to get ideas about how to preserve profits before the next downturn.

Any idea if/when you might do a back test on Chandelier exits (trailing ATR stops)?

Done! See Exit Strategies BackTesting Reports at: http://backtestingblog.com/order/exit-strategies/

How does one use BackTesting Report to make money in the stock market?

Knowing what has worked and what didn’t work in the past gives people information to form their own working strategy.  I can’t guarantee you will make money in the stock market but I can guarantee that you will learn about the stock market and technical strategies from BackTesting Report.
What markets are covered by BackTesting Report?

BackTesting Report tests are run on 7,147 tickers on the US Stock Exchanges. It is primarily meant for the US Stock Market. Applying the results to US Index Futures and e-Minis is not too much of a stretch. BackTesting Report does not test strategies on commodities or the forex currency markets.

How can I apply BackTesting Report to commodities and forex markets?

The code is available for some of the best strategies. You can apply that to your own data to run your own back test and compare it to the BackTesting Report results for the stock market.

How can I receive BackTesting Report?

By visiting the BackTesting Report Sales Page.

The Truth About MACD

Why MACD?

BackTesting Report tested the MACD to learn the truth behind its varied reputation as a trading indicator.

 Do you recommend trading with MACD?

At BackTesting Report, we offer educational material which allows you to assess the track record of MACD, and then make an informed decision for yourself whether it is suitable for your trading plan.   We supply the back test data, you make the final decision.

A MACD Histogram divergence scanner would be extremely useful, but it was my understanding that it was impossible to program.  Just to clarify: is your add-in for Stock finder really able to scan the market for classic Histogram divergences?

Yes, absolutely!     People once thought it impossible to run a 4 minute mile too!   The MACD divergence scanners honestly find divergences on MACD lines and MACD Histogram divergences.   The program does make some assumptions, for example, how far apart to look for humps of the divergence. You can change parameters easily to modify those assumptions.

What values do you use for MACD, and how did you arrive at these values?   Did you find that the same values are useful on all timeframes and all equities / futures types?

I did most testing on the standard 12,26,9 parameters for MACD.   For variations I took Gerald Appel’s advice – thinking the inventor of the MACD must know something.  He recommended 12,26,9 usually and 6, 19, 9 when in strong bull markets and 19,39,9 when in bear markets. 

Does the fact that you’ve got a video series on MACD and not on any other indicator imply that MACD is the best?

Absolutely NOT.

How do I view the free MACD video ? I’ve already entered my name and email at www.truthaboutmacd.com

First check your spam folder for a confirmation email.  If nothing arrived after one hour, please email support((((((at))))))backtestingreport.com

Do I have to fill out a profile to watch your MACD information?

Just first name and an email address.

Regarding YouTube video http://www.youtube.com/watch?v=Jt3oac0tqrc  At 5:53, UUP, at the right edge, there’s a ‘buy’ signal. Prices have sunk to a new low, but as Alex Elder explains, for there to be a proper bullish divergence, the histogram needs to have risen above the zero line “breaking the back of the bear” before making a higher low. This hasn’t happened. Also, in the middle of the chart prices have made a lower low, but both MACD H and line have made much lower lows than the earlier splash of bearishness. Similar issues on other charts.

MACD lines divergences don’t need to “Break the back of the bear/bull” per Gerald Appel. MACD Histogram divergences do need to “Break the back of the bear/bull” and that is implemented in the software scanners and backtesting.  The example mentioned is a MACD lines divergence so it is not breaking the back of the bull.

Is the MACD divergence scan data available on a subscription basis?

Not yet.  Samples are available  – See Signals Pages:
MACD Divs Daily
MACD Divs Weekly
MACDH Divs Daily
MACDH Divs Weekly

 I can’t see any place on the web page to enter my name and email to get the free Truth About MACD video

Please visit http://www.truthaboutmacd.com

MACD Positive Divergences – Is That Bullish or Bearish?

Positive Divergences are generally seen as bullish, conversely Negative Divergences are therefore regarded as bearish.

What time period works best for the MACD?

See The Truth About MACD video series and BackTesting Reports for answers to these questions and more about the historical performance of the MACD technical indicator.

 Should I use MACD or MACDH?

See The Truth About MACD video series and BackTesting Reports for answers to these questions and more about the historical performance of the MACD technical indicator.

 Will I win 100% of the trades with MACD?

See The Truth About MACD video series and BackTesting Reports for answers to these questions and more about the historical performance of the MACD technical indicator.

 How much can I expect to gain by trading with MACD?

See The Truth About MACD video series and BackTesting Reports for answers to these questions and more about the historical performance of the MACD technical indicator.

Where can I find examples of your MACD Divergence scanners?

StockFinder example: http://www.youtube.com/watch?v=Jt3oac0tqrc
TradeStation example: http://truthaboutmacd.com/TSDivExample_L3

Is The Truth About MACD CD audio only or does it include graphics?

The CD-ROM contains an audio presentation.  The CD-ROM also contains a free BackTesting Report and a free stock scanner for EMA crossovers.

Is the free report that comes with The Truth About MACD CD-ROM one of the four Truth About MACD reports?

The Free Report is the very first BackTesting Report which does a baseline of the market for later comparison with real strategies.    The four Truth About MACD reports are different and focused on the MACD.

Do The Truth About MACD videos, audio, and reports all cover the same thing?  How do I choose between them?

The heart of the material is the same between the video course and the reports, however, some topics are unique to each.  The deciding factor of which to buy is probably whether you learn more by reading or by watching and listening.
Both reports and videos cover MACD, MACD Histogram, and MACD divergences.  They cover usage and back test results.
In the videos but not in the reports are :
Short selling
MACD + ADX
More about how to recognize the various MACD signals.
The reports have more data than the videos, particularly Max Adverse Excursion and Frequency Distributions of Results.   They are more research-oriented than tutorial.
The audio on the disc is the most concise summary of lessons learned from MACD backtesting.   It doesn’t tell you about how to recognize the signal nor does it go into the data or reasoning behind each “secret” of the MACD.

 I’m looking at a chart of XXXX and think I see a divergence.  Can you please confirm?

The scanners at http://backtestingblog.com/code/macd-divergences/  can help you identify divergences. Time constraints prevent me from looking at every chart.  

Is using the MACD alone is a wise choice?

The Truth About MACD video and backtesting reports are designed to help you with that decision.  You need to watch the videos or read the reports to get the data to make a decision for yourself on whether to trade the MACD.

What are the contents of the MACD videos?

The same topics as the reports are covered in the MACD videos
http://backtestingblog.com/order/truth-about-macd/
Plus, the videos also go over
Selling Short on MACD Negative Divergences
MACD + ADX and  steps through decision-making for a MACD trading plan.  If you are experienced with the MACD, you might just want the CD-ROM.
For $7 it’s a low risk way to get to know what back testing MACDs is all about.
http://www.truthaboutmacd.com/aff/TruthAboutMACD_ap_Disc.php

Do the MACD divergence detector software add-ins also find topping divergences for puts?

Yes.

Could you report MACD divergences on ETF?

Yes.

Can the MACD Divergence detectors scan on different time scales?

Yes.  Simply change the time scale in TradeStation or StockFinder.  Be sure to also adjust the volume parameter.   By default volume is set to 500,000 shares per bar as a minimum daily requirement to avoid thinly traded issues.   If you move to an intra-day time scale, you probably want to put in a smaller number.

I have more than one computer.   Do I need to buy more than one license for your software?

According to the License agreement, you may install it on 2 computers i.e. a desktop and a laptop.

Recommendations

 Do you recommend stocks and  ETF’s etc, to buy or sell? 

At BackTesting Report we focus on providing our clients with educational material, so that they may make more informed investment and trading decisions based on their personal preferences.

Do you recommend any trading strategies?

No, BackTesting Report compares the performance of various strategies to each other and to a market baseline.   The strategies that come out on top of that comparison are sometimes referred to as the “best of test”.   I do recommend that you have a plan which includes well-defined strategies which you believe will be successful and you may choose to use some of the “best of test” strategies in that plan.  
BackTesting Report will sometimes recommend against using a particular strategy if its past hypothetical performance was unprofitable because there’s no reason to believe such a losing strategy will suddenly start working.    That is what backtesting is really good at – ruling out losing strategies.   For strategies that do well in backtesting, there’s no assurance that they will be profitable in the future and furthermore success will often depend on the temperament of the person using the strategies. 

Do you recommend any particular stocks?

No.   At BackTesting Report we focus on providing our clients with educational material, so that they may make more informed investment and trading decisions based on their personal preferences.

Do you recommend any particular broker?

Whoever serves you best as a broker.

Do you recommend any particular charting/scanning tool?

Yes, I recommend StockFinder for two reasons: 1) I am impressed with its capabilities,  and 2) my company is an affiliate – which means we may receive commission when new people sign-up for the StockFinder 30-day free trial from any of our links.

Software Help

On your blog you mentioned that there now might be some kind of newer hook that Tradestation has provided to enable back testing a “list” of symbols in TradeStation. Can you please let me know how I can utilize this hook if it is indeed true?

 Yes, you can if you have sufficient programming skills. Check the TradeStation forums for information on how to implement it.

Do you offer any tools that spot divergence for futures markets based on the Ninjatrader platform?

At this time, our software runs on TradeStation and StockFinder.

Does your software run on freestockcharts.com?

At this time, our software runs on TradeStation and StockFinder.

Does your software support TD Ameritrade?

At this time, our software runs on TradeStation and StockFinder.

Does your MACD divergence software work with Trade Navigator by Genesis Software?

At this time, our software runs on TradeStation and StockFinder.

 Is there code written for the Trade Center Pro Platform supported by Open E-Cry?

At this time, our software runs on TradeStation and StockFinder.

Do you support Wealth Lab?

At this time, our software runs on TradeStation and StockFinder.

What software did you use? 

For my research, I used StockFinder for scanning, and TradeStation for back testing.

There are 2 StockFinders, Gold and Platinum….39.99 and 99.99 plus the exchange fees.  Which do I get?

Gold is enough for end-of-day trading.  Get Platinum if you want to do intra-day trading.

Is TradeStation or StockFinder required to use BackTesting Report?

No, you don’t need any to buy a tool such as TradeStation or StockFinder.    You can read the BackTesting Reports or watch the videos by themselves.

Do you have stocks sorted by industry group?

TradeStation has the industry and index components for RadarScreen and StockFinder does it even better. BackTesting Report software scans any list of stocks/indices/ETFs/whatever and flags MACD Divergences.
To access in TradeStation, in the RadarScreen window, right-click on a square in the Symbol column, choose Insert Symbol List, scroll down and click on the plus sign to expand the Industry Groups and select the sub-industry group you want.
 StockFinder gives you similar functionality with the Morningstar Groups. It:
–          Can scan a list of indices automatically
–          Can easily do major group as well as sub-industry group
–          Scans a whole lot faster
–          All of StockFinder costs less per month than RadarScreen (unless you trade enough on TradeStation)
–          Disclosure: StockFinder compensates me for bringing them new people

Can your chart scanning software do other time frames than the daily?

Yes

Does software work for e-minis?

Yes, the scans will find divergences on e-minis (ES, NQ, TF, YM, more) as well as ETFs ( SPY, QQQ, IWR, DIA).

Do I need to buy daily data from Worden to operate the scanners?

Yes for the StockFinder scanner.  For the TradeStation scanner you need TradeStation. These products are sold separately.

TradeStation gives error message: “Tried to reference back more bars than allowed by the current MaxBarsBack setting”

To fix this problem, in TradeStation do these steps:
1. Format Strategies
2. Properties for All (Button on right)
3. Set “Max number of bars study will reference” in lower left to 201 or higher
4. After that, you may need to hit the “status” button on the Format Strategies window to turn it on again

 I was unable to attend the Traders Expo or MoneyShow webinar.  Do you have plans to re-broadcast at any future date, or was it recorded for later listening?

You can watch the archives on the Free page.

Product Assistance

I just wanted to download the free Baseline Report.

 It is a large file and sometimes the server gets busy, please give it a minute or two to download before contacting support(((at))backtestingreport.com.  You might also try Firefox instead of IE.

When clicking on DOWNLOAD, a new window opens in the browser, I see
 that it is getting loaded, but at the end I can’t see anything.
I tried the same thing in a different browser, with the same effect.

 It is a large file and sometimes the server gets busy, please give it a minute or two to download before contacting support(((at))backtestingreport.com.  You might also try Firefox instead of IE.

 Are you selling a complete trading system?

 We are selling BackTesting Reports with data that can help you decide what indicators to include in your trading system.  We also sell software to help you learn about various indicators such as MACD and MACD divergences.

Can you deliver everything electronically and not mail me any discs or paper reports?

 Yes, just make a note in your order or send an email to (((at)))backtestingreport.com

Change of address

Check the bottom of an email from BackTesting Report for a link to manage your subscription to our mailing lists.

Can I order the videos all at once:

 The video series, online, is now available all in one go.  You can order here:
http://www.truthaboutmacd.com/aff/TruthAboutMACD_ap_Video.php

If I am not completely satisfied, may I cancel my subscription?

Absolutely, you can either log into your PayPal account and cancel there, or you can also send email to support(((at)))backtestingreport.com

 If I order the CD with the free trial of the video series and later decide that I want the whole video series right away, how can I get it?

Cancel video subscription in PayPal and re-order from the “Get it Now” link at the bottom of this page:
http://www.truthaboutmacd.com/aff/TruthAboutMACD_ap_Video.php

Can I get your products in written form rather than video?

Certainly, I actually started with written reports.
 http://backtestingblog.com/order/truth-about-macd/
 More that might interest you:
 Exit Strategies: http://backtestingblog.com/order/exit-strategies/ 
 MA Buy Signals:
 http://backtestingblog.com/order/moving-average-buy-signal-bundle/
 The Truth About MACD reports go into more detail with data.
 The video series has data on short selling and MACD + ADX which is not in these reports.

I ordered your package and so far, I’ve had no communication on where to download etc?

Check your spam folder for email from jackiep{{{at}}}backtestingreport.com.  If you still have your browser window open from the original order, click “Finish Order Now” in PayPal after giving your credit card to be taken to a download page.

How can I force PayPal to accept credit cards?

Click here to learn how to force PayPal to accept credit cards.

I can’t get your product to open.  The error message says: ” not a valid win32 application”

Download the .zip file instead

I gave my email address and didn’t get a video that revealed the secret to MACD.  Instead I only got a sales page.  How can I get the video you promised?

If you don’t see a video, first look for Adobe Flash / Active X warning at the top of the browser window and enable Flash.

How do I get all the BackTesting Reports?

Most of the reports are available here: http://backtestingreport.com/letter.htm
The Stochastics report is only available as a bonus for ordering The Truth About MACD Video series <add link> .     One more report on ADX exists but is not presently available to the public.   Please email support for more info.

Do I need to pay sales tax and shipping?

No, generally not.   All electronic shipments are exempt from sales tax.  For the physical discs, we offer free shipping and pay sales tax for California residents.  (check with your accountant or tax advisor)

Where is the link for the delivery address if order the CD? Can you please let me know because it directly takes me to the PayPal payment.

PayPal will ask for your address and pass it on to me.

You keep on sending me emails.  How can I stop receiving them?

See the bottom of the email for opt-out instructions

 If I already have The Truth About MACD CD-ROM and now I want to do “Get it Now” for the video course which includes the CD-ROM, can I get a refund for the $7 I already paid for the CD?

The video series is already a great value at the “Get It Now” price and we don’t offer any further discounts.

Can I receive everything electronically?

Yes!  Reports and videos are electronic only.  The CD-ROMS can be downloaded electronically – just ask!

Can you ship internationally?  Is there an extra charge?

An electronic copy is sent so that you don’t have to wait for the post. No shipping charge. Duties are your responsibility.

My firm has multiple traders who need BackTesting Report.  Any discount for multiple users?

Yes, please contact me with specifics for a site-wide subscription.   Email jackiep {at} backtestingreport {dot} com  is best or call +1.650.752.4921 between 8am – 8pm Pacific Time (GMT – 8).

Can you accept any other form of payment besides PayPal?

Yes, you can mail in a check.  Be sure to include your email address because that is how you will receive your products.   Allow extra time for the check to clear.  Please make the check payable to Own Mountain Trading Company and mail to PO Box 8490, Truckee, CA 96162-8490.

Can I order by mail with a check?

Yes, you can  mail a check.  Be sure to include your email address because that is how you will receive your products.   Allow extra time for the check to clear.  Please make the check payable to Own Mountain Trading Company and mail to PO Box 8490, Truckee, CA 96162-8490.

Will I be able to watch these videos at my leisure or at specific times set by you?

You can watch whenever you choose.

Own Mountain Trading Company

What is Own Mountain Trading Company?
Own Mountain Trading Company is the tiny corporation that produces BackTesting Report, The Truth About MACD, and