Introducing Backtester

here's our first product to help you with your trading/investing journey in the stock markets.

note: if you're new to trading in the markets, then start from here

on a high level, in a stock analysis, there are 2 parts of it: fundamental analysis & technical analysis

fundamental analysis

fundamental analysis is like the foundation of any given stock, in other words, there's literally no point in trading/investing with/in a stock without doing this, so it is at the core of a stock analysis where the business, financials, potential & growth are all analysed.

technical analysis

technical analysis is like the heart beat monitor of the stock that gives various information about the previous & current state of the stock as it has all the past data recorded for us, tick by tick with anonymised transactions recorded with all required parameters for us to analyse.

analysing technical charts gives us an in-depth understanding of the people's greed/fear at any given moment historically in any given charts, that's how powerful charts are. as it goes with the human's greed/fear that fluctuates up & down and there's literally no clear understanding of how it works by neuro-scientists, psychologist or any other brain/psyche related professions. but, there are certain anamolies that could be identified as patterns and that is precisely how traders make money from their technical analysis skills.

currently, we've developed a tool for you to test the behaviour of a stock in any given period from its listing date with the help of the historical price data of a stock, we could backtest & identify if any given behaviour of the stock in the past would've given output that we could identify.

now, you may ask, how do we define the behaviour? well, we call the way to defined the behaviour as conditions, you can define the conditions or rules with various options available in our tool and verify if the same set of conditions in the past has given our desired behaviour or not and based on this study, we could benefit from trading in that stock, this study in the financial world is termed as backtesting

why Backtesting?

in stocks, if something hasn't worked in the past, there's a miniscule chance of the same thing happening in the future

the human's greed & fear has existed for several decades and the same gets reflected in the stock trading as well, which means the same pattern of greed & fear plays over & over again in a cycle of events in the economy and in wrt the behaviour in any given stock.

understanding the patterns of greed & fear of people in the market and benefitting out of it is the crux of technical analysis, that's literally what traders in the markets do. and hence we're introducing a tool to help you to backtest stocks.

note: backtester focuses on technical analysis for now and we'll be updating with fundamental analysis options going forth

Enter Backtester

Backtester is an app with a bunch of options to help you backtest a stock with its historical price data.

before moving on, lets clear out one more jargon in the technical analysis world called: Strategy

what's a Strategy?

a Strategy is a set of conditions we define to represent a particular behaviour

a Strategy is the way to define a bunch of conditions to identify a pattern that collectively represents the behaviour of people trading in that stock in the given timeframe.

that's the simplest definition we could come up with. dont worry if you didn't get this yet as you will when we get into it next.

here's a glimpse of the Backtester app:

You can watch the Full Intro Video

we'll be deep diving into the tutorial of how to use the Backtester app