Hello All,

This is a rather general question about backtesting : How is it done?
(People of my age would usually write "lol" immediately after that question)

My current situation (Im a beginner at this):

I'm working on a variation of the TAA strategy that was written by Mr. Faber
and while its simple enough, I have no idea how to backtest.

This is what I think is backtesting:
 - Must be a walk-forward (or decisions must only be based on events already
happened)
 - Must return a set of entry points and exit points
 - Must take some initial amount of money and provide PL of each open/close
and a running PL
 - Overall percentage increase during holding period (monthly, in my case)
 - Volatility (SD of price-movement or SD of percentage change in each
month?)
 - Sharpe


Is this usually done in a function? a loop? provided in a package? (I looked
at backtest but I have no idea what that does. Im still reading up on it)

I know this is a lot to ask but can anyone show me an example?

I sincerely appreciate all the help anyone provides.


-- 
Aaditya Nanduri
aaditya.nanduri@gmail.com

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