Task: Create code and backtest the following strategy: If Today's Prediction is greater than Today's Close, then it means that tomorrow's trend is up-going and Tomorrow we will Buy at Market Open and Sell at Market Close and vice-versa.

1. Select item under the BacktestingXL menu to open Strategy Editor:

2. Change Strategy Name to "Neural Net Strategy":

3. It is recommended to use variables to increase strategy code readability. Write the following string:

4. To create action-code, write the following string:

5. Strategy code creation complete. The strategy code should look like this:

6. You're ready to create Strategy Performance Report. Click to close Strategy Editor.
7. Select item, to open Detailed Report Wizard:

8. Click AutoFind button, to automatically locate all available historical data series:

9. Select INTC data series from the list and switch to Strategy tab:

10. Select Neural Net Strategy from the list and click Settings button. Set them as shown on the picture and click Ok:

11. Click Ok on the Detailed Report Wizard window to generate report.

Task Results

• 7-worksheet detailed strategy test performance report will be generated.

• Conclusion: Neural Net Strategy has not bad performance on INTC stock.

• But it has bad performance on MSFT stock.

• Recommendations:
• Experiment with PredictorXL parameters: try to increase or decrease Error.
• Experiment with several Prediction Ranges: try to use several prediction ranges with different prediction parameters (try weighted predictions).
• Experiment with Technical Analysis Functions: try different functions and indicators and their combinations to produce predictions.