Basic Question.

[Drakmyre]

Hey Everyone,

I was just wondering if anyone knew how to backtest the DJIA Average and not the individual stocks in it. I'm using Yahoo, so they may not have the data to import(though on the site they do). But all I can get is a backtest on the stocks themselves and not the average.

[NinjaTrader_Jason]

Hello Drakmyre,

You would backtest the DJIA index. However, it will not trigger trades, since it is an index.

You can try a basket test and include all the individual stocks. More information can be found at the link below.
http://www.ninjatrader-support.com/H...asketTest.html

[anachronist]

Originally Posted by NinjaTrader_Jason

You would backtest the DJIA index. However, it will not trigger trades, since it is an index.

Actually you should backtest an exchange-traded fund (ETF) instead. You can buy and sell them just like stocks, and the major-index ETFs are pretty liquid. The Diamonds (ticker: DIA) is a tradeable instrument that mimics the movements of the DJIA. Likewise, SPY is the world's largest ETF and mimics the S&P500 index. And QQQQ mimics the NASDAQ index.
-Alex