I have an idea I would like to backtest: is it possible to do this? by Joe Hammilton

Joe Hammilton

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Hello, I am brand new user to QuantConnect! I would like to backtest the following basic idea for a particular stock. Here is the pseduocode starting with an initial cash of $1,000:

Buy Conidition: If $1,000 cash available and price drops 5% within the last 7 days, buy $1,000 of XYZ

Sell Condition: If price rises 10% since last buy order, sell all XYZ holdings

Is this possible to backtest in QuantConnect? The caveat is that this algorithm would not buy more than once in a row without selling. Also, another important distinction is that the buy condition is irrsepective of ticker price. Let me know if that makes sense!

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Joe Hammilton

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Joe Hammilton

19 ,

To be more specific about the buy condition, I imagine the algorithm would compare the current price to the price 1 day ago, 2 days ago, 3 days ago, 4 days ago, etc all the way up to 7 days, and if anyone of those comparisions is -5% it would trigger the buy condition. Let me know if that makes sense!

Jack Simonson

Hi Joe,

This is certainly possible! The best way to do this is to use our Rolling Window feature, which is a method for keeping trade of recent data slices for a given security. You can learn more about Rolling Windows here, but I would recommend that you complete our Boot Camp to familiarize yourself with the QC platform fundamentals and then read the documentation regarding Handling Data and using Indicators as well.

Joe Hammilton

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