Market data pre-1992 is not supposed to be useful for backtesting trading systems due to the change in market dynamics that began in July 1992 caused by the introduction of compulsory superannuation (provided constant influx of money into the markets. I got this info from Richard Dale, who works at Premium data.
So -- my question is -- how do i backtest my system over a bearish period when there was none from 1992 until now!
In this time, which is almost 15 years, we have had only 2 negative years, 2 sideways years, and our most "bearish period" was from 2000-2003 where we have had 2 years sideways (0% appreciation) and 1 year down LOL.
Any thoughts/ideas/discussion??
So -- my question is -- how do i backtest my system over a bearish period when there was none from 1992 until now!
In this time, which is almost 15 years, we have had only 2 negative years, 2 sideways years, and our most "bearish period" was from 2000-2003 where we have had 2 years sideways (0% appreciation) and 1 year down LOL.
Any thoughts/ideas/discussion??