If you are like many
other traders, you have been eagerly waiting for the release of Metastock
8.0 for one reason, and one reason only, the reportedly redeveloped system
tester. Metastock`s one major flaw has always been its lack of back
testing capabilities, though previous versions of Metastock are head and
shoulders above the competition on other fronts.
But whatever criteria you use to trade with, be it moving averages, candle
sticks, fibonacci retracements, or any other trading system, you`re going
to need to back test it. Everyone needs to thoroughly back test, or
simulate, their trading system in ways that can match the conditions you
will be trading in. It`s something all serious traders do.
Consequently, when Equis International (the makers of Metastock 8.0)
announced "an all-new type of exploration that emulates running system
tests over an entire database of securities", I could hardly wait to get
the Metastock 8.0 release.
While waiting to receiving my copy of Metastock 8.0 I began building
trading systems. By the time my copy of Metastock 8.0 finally arrived, I
had around 20 systems ready for testing, and couldn`t wait to try them
out.
However, when I loaded up
the software, I was in for a surprise. It looked like nothing had changed.
I thought maybe Equis International had kept the same interface and added
in greater flexibility and some more features, but after searching in
every nook and cranny, I found next to nothing that was new. It looked the
same and, except for a couple of small changes, it was the same!
Then I came to the System tester - now called the "Enhanced System
Tester". This was my major reason for upgrading from version 7.22. This is
what appeared to be only real difference between Metastock 7.22 and
Metastock 8.0.
After fiddling around with the Metastock 8.0 Enhanced System Tester for a
few hours, and testing my 20 systems, I reached the verdict that I wasted
my money on the new version of Metastock 8.0. Despite the supposed
improvements to the Enhanced System Tester it, like it`s predecessor, left
a lot to be desired.
Even though the Metastock 8.0 Enhanced System Tester tests multiple
securities in one batch, it treats each security independently of the
others. Therefore, when Metastock 8.0 tests the first security, it uses
your predefined float and takes the trade over the test period selected.
Once that is completed, it repeats the same process for the second
security, using the same initial float, with no reference to the first
security.
In the end, you receive the same result that you would have if you simply
tested each security individually and added the results together. Not only
is this process dreadfully slow, but the entire reason for testing your
system is side-stepped. When your finished all the explorations, the
performance of your trading system is still unknown!
The moral of the story is that if you already own Metastock 7, don`t worry
about upgrading to Metastock 8.0. Simply stick with the version you have
and keep your fingers crossed that Equis International gets it right for
Metastock 9.0.
