A correct backtest of a trading strategy requires accurate historical data. There is a reason that bankers usually live in big houses and drive nice cars- we give them money every month in interest payments! If you have credit card balances, you are probably paying somewhere between 12.9% to 29.9% interest every month. If you invest in the stock market, the long-term historical returns are about 8%, including the Great Depression and other downturns. You can enter a rate of return to compare saving your money in a bank vs. investment in the stock market.
There are some handy research tools that TradeKing has seen fit to give us. Chose a stock that looks appealing to you for whatever reason after you’ve run your screener and you will be shown several useful bits of information, you should focus on a few different ones to make your choice. The next thing you’ll want to look at will look more familiar, the historical data charts.
If your strategy revolves around buying stocks that are on the way up then you probably want to look for stocks that are near their 52 week high; if your strategy revolves around buying stocks that are down you should probably buy a stock that is priced noticeably below the 52 week high. The five year view can also show you yearly trends, and the window directly below the historical data window will show you the performance of major competitors overlapped with the performance of your chosen stock, an excellent comparison tool to catch up and coming competitors.
If there is a competitor who’s business is growing while your chosen stock is falling, you might want to look into that competitor as well. Thats a reasonable 19 years of data to perform any calculations, see and understand trends and charts. I can recall during the tech sector boom that many analysts suggested that the concept of price-to-earnings was no longer applicable to stock valuations, particularly since many tech sector companies had almost no earnings and extremely high valuations.
At this point in time, it appears that the American stock market is still significantly over-priced when one compares present earnings to share prices to the levels experienced over the past century and that we should expect further volatility to the downside in the future. If they do, I am sure that it should be available both for 1-min bars and EOD prices.