The app is a workshop for stock backtesting using Bollinger Bands assuming no commisssion. (Data from Yahoo)
Backtesting is basically testing your set of rules ('strategy') against historical data and see how profitable it is.
You can access the app here
Warning: You may have to wait for plots to load/reload.
Backtesting with Bollinger Bands App
Course ProjectーShiny Application and Reproducible Pitch
Charin Polpanumas
The Internet
What's it for?
What is Bollinger Bands strategy?
Bollinger Bands is a strategy where one buys when price drops below the lower band and sells when it pops over the upper band.
The upper and lower bands (red) are moving averages of type SMA (simple), WMA (weighted), or EMA (exponential) for a given days plus/minus two standard deviations.
What to input?
One can customize the parameters of the Bollinger bands by the sidebar input:
Symbol: symbol of the stock you want to backtest
Date Range: range of date for beginning and ending the backtest
Method: method for calculating the lower and upper bands: SMA (simple), WMA (weighted), EMA (exponential)
Moving Average Days: number of days used to calculate the moving averages
Varying these parameters gives different results and analysis.
What to make of the result?
Cumulative return is the total return since one begins trading. For example, a cumulative return of 0.10 means 10% total return.
Daily return is return on a daily basis.
Drawdowns are periods where the portfolio is at loss. For instance, -0.1 drawdown means one is losing 10%.
