The Process

From raw data to
educational insight

Every report published on Trading.hk follows a rigorous, transparent, and repeatable methodology. Here's how we turn market hypotheses into research you can learn from.

01

Research & Hypothesis

Every report begins with a question. "Does the moving average crossover strategy still work on HSI stocks?" or "How does momentum perform during high-volatility regimes?"

We review academic papers, financial literature, and market observations to identify strategies and patterns worth investigating through rigorous backtesting.

Academic Research Market Anomalies Pattern Recognition
Example Hypothesis

"Does the RSI(14) mean-reversion strategy outperform buy-and-hold on HKEX large-caps over the past 10 years?"

"How does a dual moving average crossover (50/200) perform across different market regimes in Asian equities?"

"Does the Bollinger Band breakout strategy show edge in commodity futures?"

Strategy Parameters
Entry Signal RSI(14) < 30
Exit Signal RSI(14) > 70
Position Size 10% of equity
Stop Loss -5% trailing
Universe HSI Constituents
02

Strategy Design

We define every parameter precisely — entry and exit rules, position sizing, stop losses, and the universe of assets to test against.

Transparency is key: every decision is documented so readers can understand why each parameter was chosen and how it affects results.

03

Historical Backtesting

The strategy is executed against years of historical data. We simulate every trade as if it happened in real-time — no look-ahead bias, no survivorship bias.

The engine accounts for transaction costs, slippage, and realistic execution constraints. Results are stress-tested across different market conditions.

Bias Controls
No look-ahead bias
No survivorship bias
Transaction costs
Slippage modeling
Backtest Progress Completed
2014 — 2024 10 years
0
Trading Days
0
Simulated Trades
0%
Win Rate
0
Sharpe Ratio

Sample data for illustration purposes only.

Report Contents
Strategy description & rationale
Complete parameter definitions
Equity curve & drawdown chart
Key metrics (Sharpe, Sortino, Calmar)
Monthly & yearly return breakdowns
Risk analysis & worst-case scenarios
Market regime performance comparison
Educational disclaimer & context
04

Report & Publish

Results are compiled into a structured, educational report. Every metric is explained in context — what it means, why it matters, and what it tells you about the strategy's behavior.

The same report is published to all subscribers. No personalized advice, no stock-specific recommendations — just transparent, educational research.

Ready to explore?

Browse our library of educational backtest reports and start learning from historical data.