2. Determine the backtesting period: select a historical period, such as the past year, three years or five years, to evaluate the performance of the strategy.
3. Collect historical stock data: collect historical stock price data from stock market data providers or other reliable data sources and import them into back-testing software.
4. Set trading rules and parameters: according to the selected strategy, set trading rules and parameters, how to buy and sell, stop loss and take profit, etc.
5. Carry out backtesting calculation: use backtesting software to calculate and analyze the profit-loss ratio, winning rate, maximum retracement and other indicators of the strategy in historical data.
6. Analysis results optimization strategy: analyze the back test results and optimize the strategy according to the actual situation, such as adjusting trading rules and parameters.