How does backtester decide what to include if multiple results

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  • #69273
    John
    • Topics: 8
    • Replies: 3
    • Posts: 11

    How does the Backtester decide what to include if there are multiple positive signals?

    For example:
    Buy signal when crossover of a MA occurs.

    If I have a universe of 100 stocks and want to buy 10 (allocating 10% to each position) — But I have 12 crossover signals on the same day, how does the backtester decide which 10 to use?

    #69307
    Mathew
    • Topics: 40
    • Replies: 2,021
    • Posts: 2,061

    Hi John,

    The back tester is a bit random at the moment. This is one of the issues that I am working on. Essentially every scan of the market will have an optional rank script so we have control over the selection.

    Essentially it currently is the first 10 stocks to pass that get selected. The order depends on the list and when they were added to the list.

    Hope that helps

    Mathew

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