FAQ Section

Backtesting Research

Where is a sample copy of the SIGNALS report I can view before purchasing?

You can download a free sample copy of the SIGNALS report here: https://optionalpha.com/signals

How many different technical analysis indicators did you backtested?

As part of our 20-year study we backtested 17 different technical analysis indicators. Everything from the Simple Moving Average and Exponential Moving Average to Bollinger Bands and the Money Flow Index. We believe that these 17 indicators offer the best range of momentum, volume, and market breadth indicators that give our research a wide range of exposure to technical analysis studies.

What is the format of the SIGNALS report that is delivered?

You’ll receive this report as a high-resolution PDF (digital format) from inside our secure download center. Currently there are no plans to print hard copies as of right now.

How many different stocks were included in the SIGNALS backtesting research?

The final stock selection that we included had 223 individual stocks. We narrowed this range down by using the filters which we outline in the report including longevity in the S&P 500 or Nasdaq 100 as well as minimum volume requirements and daily trading capacity.

Can’t I backtest stocks myself already - why do I need to purchase SIGNALS?

Yes you can. There are many software companies and systems out there that allow you to backtest individual stocks or strategies one at a time. But how long would it take to backtest 1,476 different indicator variations across 223 different stocks and then tabulate the results from 17.34 million trades? It took a team of more than 5 people nearly 12 months to do it and therefore we believe purchasing a copy of SIGNALS is an incredible value.

If I purchase a copy of SIGNALS will I also get the performance data for all 1,476 indicator variations run?

Yes. We include a full and extensive appendix as part of your purchase of the main copy of SIGNALS. The appendix is more than 220 pages and includes every single backtest we ran with all of the performance metrics including winning percentage, number of trades, highest CAGR, lowest drawdown, highest sharp ratio, and average profit. You can dive into any individual backtest or section of backtests by indicator to see which actual performance metric you think is best for your portfolio.

What does the SIGNALS appendix include specifically?

The SIGNALS appendix includes all of the individual and detailed performance metrics for every single backtest that we ran. It is more than 220 pages and outlines performance by category as well as by indicator type Inside you'll see the indicator test variation that we ran, the specific settings we used, the net overall profit and loss, number of trades, average win rate, average days in the trade, and the number of winning trades to name just a few performance metrics. We believe that our appendix is the most vast and comprehensive summary of technical analysis that has been published in this industry to date.

What are the optimal setting matrices and how will they help me?

The optimal settings matrices are your ultimate indicator quick reference guides. They give you the ability to see the Top 10 overall technical indicators by performance metric. It's an easy way for you to quickly find the best indicator that fits your overall trading style and helps you visually see which indicators performed well across multiple performance metrics. Many of the people who have purchased a copy of SIGNALS say that these 6-pages alone are worth their weight in gold because they give you a clear visual representation of which technical indicators and settings you should be using in the future.

Are there simulated portfolios showing the performance of the TOP 5 indicators?

Yes. As part of our research and backtesting we wanted to stress test our TOP 5 indicators against real world portfolio situations and trade allocations. Therefore, you'll see multiple simulated portfolios ranging from $10,000 to $500,000 and multiple allocations ranging from 1% per trade to 25% per trade. This gives you an incredible framework for how you should be using these market signals in the future for your own portfolio regardless of your starting balance.

What were the performance categories tested that are included in the report results?

We have included many different performance metrics of which include; highest net profit per trade, highest CAGR per trade, highest win rate, highest drawdown, lowest drawdown, highest Sharpe ratio, highest Calmar ratio, average profit, number of trades, number of wins, days in a trade, average profit to loss ratio, number of consistently winning trades, and number of consistently losing trades. You'll find that we did not leave any vital performance metrics out and included all of the portfolio backtesting results for each individual backtested indicator variation inside of our massive 220 page appendix.

Will the best signals/indicators still work in non-US markets, commodities, futures, FOREX?

While we can't confirm that for certain since we didn't test non-US stocks, we are confident that the size and scope of this report is more than conclusive in its findings which should be applicable to other liquid financial markets around the world. This would include foreign stock markets, commodities, futures and FOREX.