System Simulator

The 'System Simulator' window can be accessed via the commands drop down menu or the commands toolbar:

The single system Back Tester (System Simulator) allows you to test the effectiveness of the trading systems you've created in the System Builder.

Here are the steps you'll need to take to create a report using the Back-tester:

Step 1: Under 'Historical Data' at the to choose your data frequency by clicking on 'Daily'. A list of frequencies will pop up in a menu ranging from intraday (5 min) to monthly data.

Step 2: Choose how much historical data you will be analysing by clicking on 'All'. A menu will appear with several options. Choosing 'Number of Days' will give you a white box to enter an integer. Choosing 'From date' and 'Date range' will give you date drop down boxes to choose your dates.

Step 3: In the 'Compare with' section there is a couple of tick boxes. You can choose to compare your results with a 'Buy and hold' scenario and a 'Risk free Return' of which you can manually specify.

Clicking the 'Make Default' icon means that what ever you've chosen in steps 1 - 3 will come up automatically next time you open the simulator window.

Step 4: On the left enter in a security code (eg. RIO.ASX).

Step 5: Now you will need to choose either 'system study' OR 'system file'. Choose 'System File' to test systems made with the 'system builder'.

Extra Information:

'System Study' will bring up any predefined systems that come default with the PhoenixAI which at present is not much. You can not use 'system study' to access any files you created in the system builder.

'System File' will allow you to choose the saved trading systems you've created using the 'system builder' window.

Step 6: Then click on a system (created using the system builder), and click 'Open'.

Step 7: Click 'Simulator' to choose the type of simulation you want to run.

Step 8: In the window that pops up, on the left choose 'Trading Simulator'. This will bring up a list of arguments on the left of the window.

Step 9: Type in an initial amount of money you want to simulate trading with (eg. $10000).

You can the choose to have a percentage based transaction fee.

Next you'll need to decide whether to have long or short trades, or both.

And lastly you can choose to trade less with the short trades than the long trades by entering a 'percentage of balance for shorts'.

Step 10: Once you're happy with the parameters you set for the arguments click 'OK'.

Step 11: Finally click 'Generate'.

In the 'Latest System Status' section you should then see it say 'computing...' for a few seconds and then that should change to 'Success'.

Step 12: Now you can start clicking the tabs at the bottom to view your results.

The tabs are as follows:

System: Shows you a list of every position take and when it was taken.

Simulation: Shows you how much money and how many share where traded for every position taken.

Graphs: Will list every position taken on a chart.

Positions: Lists the % Gain/Loss for ever position taken.

Compare: If you've back tested more than one stock, this tab will show you a list of summary results for each security. Under %Gain/Loss, it will show you the % your system has made or lost. It will also list how much you would have made if you had of just bought and held the stock for the entire time traded (Buy & Hold) and how much you would have made if you had have just put your money in a term deposit (Risk Free). Remember you can manually set the risk free rate (Step 3).

Related Topics:
System Builder