Option Alpha Launches “SIGNALS” the 20-Year Technical Analysis Backtesting Report

SIGNALS is our 20-year technical analysis backtesting report. Here is a look at the results of tracking 17.34 MILLION technical analysis trades over 20 years.
Option Alpha Launches “SIGNALS” the 20-Year Technical Analysis Backtesting Report
Kirk Du Plessis
Jan 18, 2016

Here are the things you need to know before purchasing a copy...

We selected 223 stocks and analyzed their performance using 17 different technical indicators with more than 1,400 test variations for the past 20 years (from 1995-2015). It took us quite a long time, and I ended up hiring some additional full-time help, but after nearly 12 months of non-stop backtesting, we had a huge database of more than 17.34 million individual stock trades that we tracked and analyzed.

And while the 17.34 million trades part just sounds really cool, the point of doing so much research was to gather enough data points to prove beyond a shadow of a doubt that our research was correct.

Or more importantly, reliable for people like you to use in the future. . .

Honestly now how confident would you have been if I said to you, "We tested 5 stocks for 3 years and 200 trades and this is what we discovered."

You'd probably laugh in my face and tell me that whatever came out of that report was just dumb luck.

Heck, I would have laughed at myself too. And for that reason, I knew almost a year and a half ago when we started this project that it had to be bigger, and better than anything else out there right now.

Confidently I can say that NOBODY has done the backtesting research that our team did with as much depth and detail.

5 Things "SIGNALS" Reveals About Technical Analysis You Need to Know

First off there are way more than just 5 things you'll learn from reading this backtesting report. But if we had to narrow down just the top 5 things you'll learn, here they are:

1) The Specific Indicators that Outperformed the SPY Benchmark

Let's not mess around here, we backtested 17.34 million trades and afterwards it took us nearly 2 months just to summarize the data into the most significant pieces. This includes finding out exactly which indicators worked and which didn't. What came out of this report was that only 5% of the variations we tested actually outperformed the market.

2) Reveals Which Indicators Work Best for Short-Term & Medium-Term Trading

We categorized and sorted all the performance data into short-term and medium-term matrices so that it's easy for you to find the indicators that work best for your specific trading timeline. Here's what we can say, the best short-term indicators are not the best longer-term indicators and therefore without knowing exactly which works best you'll never be confident in your technical indicators.

3) Reveals The Indicators You Want to Avoid Completely

As we've already revealed early this week, some of the most popular indicators like the Simple Moving Average are frankly useless for investors in predicting stock trends or trades. But this wasn't the only one we found that failed on multiple performance metrics; there are many other popular and widely used technical analysis indicators that just don't work. We've now exposed those indicators here.

4) The Results from Every Single Test Variation We Ran

This report is airtight and for that reason we are releasing a complete and thorough appendix (with more than 200 pages) which details and outlines each and every single backtest we ran. You'll find the specific indicators and settings we tested as well as major performance metrics like win rate, overall net return, days in the trade, average profit, number of trades overall, maximum drawdown and many more.

5) How 25 Model Portfolios Performed With the Top 5 Signals

For our team, it wasn't enough that we just backtested individual indicators. We also wanted to put our TOP 5 indicators through real world portfolio simulations. This includes constraints like account size and allocation size per trade that would be found by the people like you who plan on purchasing the report and using it for trading signals in the future. So, inside the SIGNALS report, you'll see how 25 different portfolios performed for each of our TOP 5 indicators.

Pick up your copy of SIGNALS today and finally see which technical analysis indicators you should be using. If you have any questions at all please add them in the comment section below and I'll make sure to personally respond to each and every one of them this week.

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