The major reason for everyone’s anticipation of Metastock 8.0 was due to the talk of a completely redeveloped system tester. Although previous versions of Metastock were head and shoulders above its competitors, Metastock’s one major flaw had always been its lack of back testing capabilities. I couldn't wait to do a MetaStock Review.

Consequently, when Equis International (the makers of Metastock) announced “an all-new type of exploration that emulates running system tests over an entire database of securities” I, and hundreds of other traders, could hardly wait for Metastock 8.0’s release.

In the lead up to receiving my copy of Metastock 8.0 I begin building trading systems. By the time my copy of Metastock 8.0 finally arrived I was so excited having about 20 systems ready for testing.

However, when I loaded it up I was in for a surprise.

At first glance it looked like nothing had changed. I thought “ok, perhaps they have kept the same interface and added in greater flexibility and more features”… but after searching in every nook and cranny, I found next to nothing. It looked the same and, except for a couple of changes, it was the same!

Then I came to the System tester (now called the “Enchanged System Tester”). The major reason for upgrading from version 7.22 to 8.0 and what appeared to be one and only apparent change from Metastock 7.22 to Metastock 8.0.

After fiddling around with the Enhanced System Tester for a few hours, and after testing my 20 systems, I reached the verdict that “I had wasted my money”. Despite the supposed improvements to the Enhanced System Tester, like its predecessor, Metastock 8.0 left a lot to be desired.

Even though the Enhanced System Tester tests multiple securities in one batch, Metastock 8.0 treats each security independently of the others. In other words, when Metastock tests the first security, it uses your predefined float and takes the trade over the test period selected. Once completed, it repeats the same process for the second security, using the same initial float, with no reference to the first securities traded.

The consequence of this type of testing is that you receive the same result as you would if you simply tested each security individually and added the results together. Not only is this process dreadfully slow, but the question of the performance of the trading system still goes unanswered.

In summary, and in my opinion, the moral of the story is that if you already own Metastock 7 don’t worry about upgrading. Simply stick with the version you have and keep your fingers crossed Equis gets it right for Metastock later versions of MetaStock.

***NEW DEVELOPMENT***
BACKTESTING IN METASTOCK IS FINALLY HERE

Read my new article on how to backtest using TradeSim - Click Here