Trading Systems

QuantShare is an advanced (multi-databases) trading software with powerful back-testing and simulation features, advanced charting and drawing capabilities, many plug-ins, a social network website and a sharing server where application users can discuss, create groups, review, vote and share trading objects with other users. Application objects include : Trading systems, scripts, composites items, list of symbols, money management scripts, list of rules, ranking systems, neural network prediction items, genetic algorithm optimization items, download scripts...

The software is currently in a beta-testing phase. Beta testing is a special development phase that helps us track bugs, errors and improve the application before its official release. We suggest that only experienced users take part in BETA testing. If you are interested in testing the software just enter your email address and we will send you further information. The beta version of the software, the access to the web 2.0 website and the sharing server are FREE.



Tuesday, January 03, 2006

Stock Split (Part 2)

Stock Split (part 1)

Back-test problems:
Lot of back-testing software provide feature to let you add stock split date in their data, so the software can adjust its quotes for every split you enter.

The problem is that you can’t add all split’s events in your software because that too much works and too many stock splits happen in the market. Just take a look at stock split calendar in some website to see how many stocks are going to perform a split in next days.

So, how to deal with this problem?
- Some software already incorporates stock quotes with splits, so all quotes should be adjusted.
- For other software that needs to connect to a free or paid server to download quotes, what you have to do is to choose a server than contains split adjusted data.
Example of paid website : http://www.historical-stock-data.com
- If you use quotes that are not split adjusted, then a final solution is to take all trades that performed more than +-20% (Maybe a split happen) and to make sure there isn’t any split that happened at the period where it was picked.
After that you can signal a split in your software or discard this stock to make the back-testing errorless.

Stock split strategy or trading stock split:
In another post, I will discuss about strategies that use stock split as buy or sell signals.
If you want to follow these stock splits, there is some website that publishes stock split calendar. Do a stock split calendar research on Google to find these websites.
I personally use yahoo stock split calendar.