Unlock the Power of Backtesting with Amibroker: Generate Trading Systems with Accurate Trade Data!

 Backtesting trade data is an important step in developing a trading system. It involves testing a trading strategy on historic market data to determine its viability or profitability. Amibroker is a powerful technical analysis software used to backtest and optimize trading systems. It provides a wide range of tools to analyze and backtest trading data.

In this article, we will discuss how to use Amibroker for backtesting trade data and generating trading systems.

First and foremost, you need to install Amibroker on your computer. You can download the software from the official website or purchase it from a seller. Once installed, you need to load the historical data into Amibroker. You can do this by importing data from a CSV file or by downloading it from a third-party service such as Yahoo Finance or Quandl.

Once the data is loaded into Amibroker, you can start creating technical indicators and formulas. Amibroker provides a wide variety of indicators and formulas that you can use to analyze the trade data. Some of the most popular technical indicators used in backtesting are Moving Averages, Bollinger Bands, and MACD.

Once you’ve created the indicators, you can set up a trading system in Amibroker. This involves defining the entry and exit rules and parameters. For example, you can set up a system that buys when the price is above the 200-day moving average and sells when it is below the 200-day moving average. You can also set up other rules to determine when to exit a trade, such as when the price reaches a certain stop-loss level.

Once the trading system is in place, you can use Amibroker to backtest the system on the historical data. Amibroker allows you to simulate trades and view the results in chart form. This will give you an idea of how the system would have performed in the past.

Finally, you can optimize the trading system by changing the parameters and rules. This can help you find the most profitable settings for the system. Once you are satisfied with the results, you can start using the system in real-time trading.

Backtesting trade data is an important step in developing a trading system. Amibroker provides a powerful set of tools for backtesting and optimizing trading systems. With this software, you can test a trading system on historical data and optimize it for the best results.

How To Import Options Intraday Data Into Amibroker

How to Import the Options Data being posted on this blog in Amibroker

Some readers are experiencing difficulty in importing the options data into Amibroker.
I am sequencing the steps required to make the process easy to import the data.

Download any one of these two files given below as per your preference of Text or CSV file import or you may download both also as it will be like an add on.

IEOD CSV  

IEOD TXT  

Paste these two files in the Amibroker Formats folder. Generally the path of this folder is in

C Drive --- Program Files (x86) --- Amibroker -- Formats

Basically where Amibroker is installed , you will find Formats folder in that directory.

After pasting them search for "TYPES" file named as 'import' in the same Formats folder.

Open that import file and paste these two lines at the end

IEOD TXT Format (*.txt)|*.txt|IEOD TXT.format
IEOD CSV Format(*.csv)|*.csv|IEOD CSV.format

After completing these steps you are ready to import the data. 

Extract the zipped file contents [data file] in a folder of your choice. The output will be CSV or/and Text files.

Now Open Amibroker, from the File Tab choose Import ASCII, reach the folder where you have extracted the data files. 

Select the files of options data, the CSV or TXT files under File name as the case may be. In the Files of Type through the drop down choose the IEOD CSV or IEOD TXT file from the Formats folder of Amibroker , then click open , the import process wlil then complete. You will see the tickers in your database.

How To Export Intraday Amibroker Data: Amibroker AFL To Export Intraday Data

Many times we like to backup Amibroker database for use in times of contingency where due to some technical reason we might lose the database in Amibroker which we had saved in a long period of time. This becomes all the more important in case of real-time intraday data.

For this very reason there is an Amibroker AFL to export data from Amibroker. Intraday Amibroker data can be exported in chosen timeframes like one minute, three-minute, five-minute, 10 minute, 15 minute and so on. Some users need the database in .csv format and some others in .txt format. For this very reason I am uploading here the Amibroker export data AFL for both kinds of formats. You may like to use any one of them as per your preference.

To make things easier I'm posting screenshots of the process to export intraday data from Amibroker through the use of this Amibroker AFL. First you will have to place the Amibroker AFL in the Formulas folder of your Amibroker directory. Then you will have to create a folder where you would like to save the exported data. In case of this AFL the folder used is C://SaveData. If you like to choose some other folder then you will have to make changes in the export intraday data Amibroker AFL.

For understanding the process of intraday data export from  Amibroker please go through the images posted below. You can find the download link below the Images.

Export Intraday Data From Amibroker AFL V1.0

 

Export Intraday Data From Amibroker AFL V2.0

 

The new V2.0 is for Amibroker 6.30 as many users were asking for the same.

This version also includes Export of Open Interest in the Last Column.

Awesome Oscillator Amibroker AFL

The Awesome Oscillator (read AO henceforth) is an indicator used to measure market momentum. AO calculates the difference of a 34 Period and 5 Period Simple Moving Averages. The Simple Moving Averages that are used are not calculated using closing price but rather each bar's midpoints. AO is generally used to affirm trends or to anticipate possible reversals.

The Awesome Oscillator was created by Bill Williams.

CALCULATION

lengthAO1=input(5, minval=1) //5 periods
lengthAO2=input(34, minval=1) //34 periods
AO = sma((high+low)/2, lengthAO1) - sma((high+low)/2, lengthAO2)

By its nature as an oscillator, The Awesome Oscillator is designed to have values that fluctuate above and below a Zero Line. The generated values are plotted as a histogram of red and green bars. A bar is green when its value is higher than the previous bar. A red bar indicates that a bar is lower than the previous bar. When AO's values are above the Zero Line, this indicates that the short term period is trending higher than the long term period. When AO's values are below the Zero Line, the short term period is trending lower than the Longer term period. This information can be used for a variety of signals.

Zero Line Cross

The most straightforward, basic signal generated by the Awesome Indicator is the Zero Line Cross. This is simply when the AO value crosses above or below the Zero Line. This indicates a change in momentum.

When AO crosses above the Zero Line, short term momentum is now rising faster than the long term momentum. This can present a bullish buying opportunity.

When AO crosses below the Zero Line, short term momentum is now falling faster then the long term momentum. This can present a bearish selling opportunity.
  
Source of Info: Trading View 

Download Awesome Oscillator AFL for Amibroker

Awesome Oscillator Amibroker AFL

Camarilla Pivot Lines AFL

CAMARILLA PIVOT POINTS

Some traders prefer Camarilla Pivot Points . This AFL serves the purpose and it works very well on the Intraday chart showing the camarilla pivot lines quite clearly.

Support and Resistance levels can be shown and hidden with the help of Parameters option.

DOWNLOAD CAMARILLA PIVOT POINTS AMIBROKER AFL

Camarilla Pivot Points Amibroker AFL

Read Also: Top 10 Amibroker AFL For Easy Trading

Demand And Supply Amibroker AFL

The whole working of the stock market price action lives within the market structure of demand and supply. Price action oriented traders are continuously watching the creation of dynamic demand and supply zones in the market structure. The price has the function to rotate between the demand and supply zones. Professional traders with their expertise are able to identify the demand and supply zones very efficiently with the help of reading candlesticks and patterns made by candlesticks.

To make things a little bit easier for the traders who are on the path of refining their skills for price action trading an Amibroker AFL for plotting the Demand and supply zones has been written. The application of afl on the chart will help the traders to get a helping hand in understanding the current situation prevailing in the existing market structure.

Demand and Supply Amibroker afl

The Red line depicts the levels from where the market sold off and therefore marking them as the dynamic resistance levels.

The Blue line suggests the area of demand cropping up and therefore identifying such areas as the demand zones.

This will be of help to get prepared for the anticipated price action on these levels of importance.

DOWNLOAD DEMAND AND SUPPLY AFL

Previous Week Open High Low Close Levels Amibroker AFL

Weekly reference points of interest for traders are the Open , high , low and close levels for the past week. These are levels where swing traders take their decisions of entries and exits. Lot of activity happens at the previous week ohlc levels. Having them plotted on ones chart makes it easy for the trader to refer them while making the trading decisions.

Previous Week Open High Low close Levels Amibroker AFL

The Teal Line is the Previous Week High Line
The Blue-Grey Line is the Previous Week Low Line
The Green Line is the Previous Week Open Line
The Yellow Line is the Previous Week Close Line

DOWNLOAD PREVIOUS WEEK OPEN HIGH LOW CLOSE AMIBROKER AFL

VWAP And Standard Deviation Bands Amibroker AFL

 VWAP & Standard Deviation Bands

In finance, volume-weighted average price (VWAP) is the ratio of the value traded to total volume traded over a particular time horizon (usually one day). It is a measure of the average price at which a stock is traded over the trading horizon. 

The VWAP can be used similar to moving averages, where prices above the VWAP reflect a bullish sentiment and prices below the VWAP reflect a bearish sentiment. Traders may initiate short positions as a stock price moves below VWAP for a given time period or initiate long position as the price moves above VWAP

Institutional buyers and algorithms will often use VWAP to plan entries and initiate larger positions without disturbing the stock price.

In addition to the VWAP , this Amibroker AFL also includes Standard Deviation Bands from the VWAP. So basically one can assume the chances of movement away from the VWAP. This is very important from the Intraday trading point of view.

VWAP And Standard Deviation AFL

DOWNLOAD VWAP AND STANDARD DEVIATION AMIBROKER AFL

Amibroker AFL For Elliot Wave

Amibroker AFL for Elliot Wave

Traders who are interested in Elliot Wave Analysis have to use discretion in marking the waves.This Amibroker AFL for plotting Elliot Waves on the price chart can be really helpful in aiding the trader for doing the work technically in a more advanced way.You may see the image below to see how the plotted Elliot waves look on the price chart.

Elliot Wave Amibroker AFL

DOWNLOAD ELLIOT WAVE AMIBROKER AFL

Amibroker AFL for Market Profile Chart In Amibroker

Amibroker AFL for Market Profile Chart In Amibroker

Amibroker users are including Amibroker afl for Market Profile chart in Amibroker at large. If you are still to include the amibroker afl for market profile in your arsenal then try it. Market Profile has been a very powerful tool in analysing the value of price The value area high, point of control and value area low are very powerful areas of trading. Amibroker has certain limitations in plotting the Market Profile chart as it should be exactly but still the coders of the amibroker afl for market profile have done a great job in maintaining its accuracy and one can view the correct levels of VAH, POC & VAL through this afl.

Read Also: Top 10 Amibroker AFL

Market Profile Chart

The creators of the AFL have done the settings as such that you could view the chart in the 5 minute and 15 minute time frame in the best possible manner. Sometimes the afl throws an error and you could not view the chart. In such a scenario it has been observed that if you zoom out the chart then the display of the chart resumes.

I posted the amibroker afl for market profile code in the post itself but now I am uploading to the storage drive so that readers can download the code directly and insert in their Amibroker Formula folder.

Update 

Users with newer versions of Amibroker are facing error issues in the Market Profile AFL code posted earlier in this blog. There is another AFL which was coded for Amibroker version 5.80 & above. This code is slightly different in its graphics from the above image but it helps in overcoming the error in the code. So please download that version of Market Profile Code.

Market Profile AFL 1

Market Profile AFL 2 [For Amibroker Version 5.80 & above]

Previous 20 Days Highest High & Lowest Low Amibroker AFL

Amibroker AFL for Previous "n" days highest high and lowest low. We can also call it as Amibroker AFL for Previous 'n' bars highest high and lowest low. The image shown below is of previous 20 bars highest high
and 20 bars lowest low values. You can change the number of days as per your requirement through the parameters window. Usually traders use the highest high and lowest low values to trade the breakouts or breakdowns.These highest high & lowest low values are also often referenced for spotting trade reversals.

Previous n Days Highest High and Lowest Low

Download Amibroker AFL For Previous N Days Highest High And Lowest Low

Amibroker AFL For Previous Day High Low Close Levels

Previous day High Low and Close Levels are very important reference points for intraday traders. Many traders call them as Yesterday levels, Last day levels also. In Amibroker charts, most intraday traders use these levels by marking them manually through a horizontal line. Amibroker AFL for previous day high low close levels will automatically plot these levels on current day's intraday chart. This Amibroker AFL for previous day high low close levels will plot the levels only on current day's chart so there will be no clutter.

Simply three lines of previous day high , previous day low and previous day close will be plotted. The colour red line is previous day high, the clour green is previous day low and the colour light grey is previous day close.

You may also like: Top 10 Amibroker AFL

Previous Day High Low Close Levels Chart

Download Amibroker AFL For Previous Day High Low Close Levels

3 EMA and 15 EMA Crossover Amibroker AFL

315 Strategy AFL . This AFL is a 3 EMA & 15 EMA crossover. The AFL includes a trend ribbon which helps in decision making as per the trend prevalent at the time of the cross. When Ribbon is red, preferably the Buy trades should be avoided on crossover and when the ribbon is blue, preferably the sell trades should be avoided on crossover of the 3 EMA.

3 EMA and 15 EMA Crossover Amibroker AFL

Moving average crossovers can sometimes be very annoying as they might result in multiple whipsaws and losses . This is mostly the case when the market is in a sideways mode.

DOWNLOAD 3 EMA and 15 EMA CROSSOVER AMIBROKER AFL

Amibroker AFL For Volatility Trading Strategy

Amibroker AFL for Volatility Trading Strategy. This amibroker afl takes into account the close price of previous day, Fibonacci ratios and average of the previous ten day highs and previous ten day lows for plotting the Buy Sell trigger levels and the Target levels for the price. As the price  moves as per the average true range so this amibroker afl for volatility trading strategy generates quite good signals.

The trader can tweak their methods with the help of this amibroker afl as price targets are calculated mechanically and therefore can be helpful to make a decision regarding placing the orders.

You May Also Like: Top 10 Amibroker AFL For Ease Of Trading

Volatility Trading System

Download Amibroker AFL for Volatility Trading Strategy

Amibroker AFL to Identify Trend Reversal

To identify a Trend Reversal in a trading strategy is a big query for every trader. Trend Reversal if caught at a good timing can be really fruitful to profit from the stock price moves.There are various methods followed by traders to identify Trend Reversal of a scrip or stock. This is a very lengthy topic which can take several pages of elaboration. Different time frames have different trends at the same time of trading periods. Every type of trader tries to follow the trend of their own trading time frame.

In Amibroker an AFL is being used which identifies Trend Reversal. The AFL seems quite interesting but one should always make it sure that before using any system it should be tested. So a good strategy to test it manually can be a Bar Replay function in Amibroker for getting acquainted. Then using the AFL in real time and paper trading through it. If the results are good then only tend to use the Amibroker afl for real trading purpose.

Read This Also: Top 10 Amibroker AFL For Trading Purpose

The AFL being posted here is on as is basis as written by the author of the AFL. You should not take it as an advice to base your trade decisions on the same. Trading decisions should be purely done on one's own initiative.

Earlier I posted a Trend Reversal AFL system based on Heiken Ashi Candles. Although the AFL had results but it was printing too many signals and was also looking into the future which meant that during backtesting it could give good results but when one uses it real time it might repaint the signals with the change of indicator readings. Therefore I thought of sharing a better Trend Reversal catching AFL where the visual effect has good efficacy. Those who tend to remain with the trend patiently would find it better to make their decisions for entry and exits as it also prints target levels. This AFL will be good for Intraday traders who choose shorter time frames like 5 minute , 10 minute , 15 minute etc. for their trading needs.

Identify Trend Reversal

DOWNLOAD TREND REVERSAL AMIBROKER AFL

3 Day Highest High Breakout & Lowest Low Breakdown System

Traders want to catch the momentum, which turns the trade profitable quite quickly which is a satisfaction in itself for the traders. When the trend heats up many traders want to follow the breakouts or breakdowns of important levels in the price history. Two such levels which are looked keenly by traders are the Highest High and Lowest Low made in the previous 3 days of the current day.

The following Amibroker AFL which is posted below for download, plots the 3 day highest high and lowest low levels on Amibroker chart.

3 Day Highest High Breakout & Lowest Low Breakdown System

DOWNLOAD 3 Day Highest High Breakout & Lowest Low Breakdown Amibroker AFL

Pivots With Prices Amibroker AFL

A Trader catches the trend with the help of identifying Pivots. These Pivots are the major reaction points for traders. Higher highs and higher lows and similarly lower highs and lower lows are identified using these pivots. Whether a trend is an uptrend, downtrend or sideways trend is clearly noticed with the help of pivots.

In Amibroker with the help of the below given AFL we can plot the pivots along with the price of those pivots printed. The trend can be set through the parameters given in the afl which will plot the pivots after 'n' number of bars. The price printed helps the trader to be ready with the levels which can result in big moves.

Pivots With Prices Amibroker AFL

Download Pivots With Prices Amibroker AFL

Dema Fan Trading System Amibroker AFL

The below given Amibroker AFL is named as DEMA Fan by the coder of the AFL. The afl gives Buy Sell signals and covering signals. The AFL seems to be using EMA crossover and plotting the signals. The system therefore necessarily be hindered by whipsaws as every other Moving Average crossover system.

Do not start using it in real time trading but apply it for general study purpose for better understanding.

Dema Fan Trading System Amibroker AFL

DEMA FAN TRADING SYSTEM AMIBROKER AFL

Modified Ichimoku Crossover System Amibroker AFL

The below given Amibroker AFL code is a Modified Ichimoku Crossover System. For those traders who like to trade using Ichimoku indicator may find this modification useful if it fits in their trading style. For using this indicator a basic information about Ichimoku indicator should be apprehended. Modifications to any system are dependent on the creativity of the coder. Therefore a system may work for the coder but might not work for others as every individual has a different trading style and it is not necessary that any modifications could be adapted by everybody. So first apply this indicator and watch how it behaves during price action.

Modified Ichimoku Crossover System Amibroker AFL

MODIFIED ICHIMOKU CROSSOVER SYSTEM AFL

Conventional RSI Amibroker AFL

The below mentioned Amibroker AFL is the code of Conventional RSI indicator. The code also comprises the clips of 70 & 30 levels which are the Overbought and Oversold levels.

Conventional RSI Amibroker AFL

CONVENTIONAL RSI INDICATOR WITH CLIPS