Amibroker is one of the most powerful technical analysis tools available for Indian traders. Known for its speed, flexibility, and backtesting capabilities, it is widely used by advanced retail and algorithmic traders. This guide shows how Indian traders can use Amibroker to backtest strategies using Indian stock market data.
What Is Amibroker?
Amibroker is a technical analysis software that allows traders to chart, analyze, and backtest trading strategies. It supports AFL (Amibroker Formula Language), a scripting language used to create custom indicators and strategies.
Unlike cloud-based tools like TradingView, Amibroker runs locally and requires users to import their own market data, making it ideal for custom workflows and offline analysis.
Why Use Amibroker in the Indian Stock Market?
- Supports NSE/BSE equity, futures, and options data
- Enables intraday and EOD (End of Day) analysis
- Fast and accurate backtesting engine
- Can handle large data sets efficiently
- Allows creation of fully custom indicators and strategies
- Compatible with data vendors like GlobalDataFeeds, TrueData, and GDFL
Step-by-Step: How to Set Up Amibroker for Indian Stocks
Step 1: Install Amibroker
- Visit www.amibroker.com and download the latest version.
- Use the 30-day trial or purchase a license.
Step 2: Get NSE/BSE Data Feed
- Choose a reliable data vendor for India (e.g., TrueData, GDFL, or GlobalDataFeeds).
- Configure the plugin to auto-update Amibroker in real-time or EOD.
Step 3: Import Stock Symbols
- Load NSE 500 or custom stock lists into Amibroker using
.csvor.txtfiles. - Ensure the format matches Amibroker’s import requirement.
Step 4: Write a Simple AFL Strategy
Example: Moving Average Crossover Strategy
aflCopyEditBuy = Cross(MA(Close, 20), MA(Close, 50));
Sell = Cross(MA(Close, 50), MA(Close, 20));
Step 5: Run a Backtest
- Open the Analysis window
- Select your AFL and apply to the symbol list
- Set the date range and run the test
- Review metrics like Win%, Profit Factor, and Max Drawdown
Step 6: Optimize and Tweak
- Use Amibroker’s optimization feature to test different parameter values.
- You can explore risk management rules and position sizing logic in AFL.
Example: Backtesting a Strategy on Infosys
- Strategy: 20/50 Moving Average Crossover
- Data Source: EOD NSE data from GDFL
- Backtest Range: Jan 2020 to Dec 2024
- Result: 62% Win Rate, 1.8 Profit Factor, Max Drawdown 12%
Advantages of Using Amibroker in India
- Speed: Executes complex backtests in seconds
- Flexibility: AFL lets you create any strategy logic
- Customization: Design dashboards and alerts
- Data Control: Use any historical or real-time source
FAQs
1. Can I use Amibroker for intraday backtesting in India?
Yes, if your data provider supports intraday data (1-min, 5-min), Amibroker can backtest those timeframes effectively.
2. Is Amibroker better than TradingView for backtesting?
Yes, for deep and multi-variable backtesting, Amibroker is far more powerful. However, TradingView is easier for quick charting.
3. Do I need coding knowledge to use Amibroker?
Basic AFL scripting is needed to customize strategies, but many pre-built AFL codes are freely available online.
4. Which Indian data providers work with Amibroker?
Popular options include TrueData, GDFL, GlobalDataFeeds, and Neotrade Analytics.
5. Is Amibroker SEBI-compliant?
Amibroker is a software tool. Compliance depends on how traders use it and whether they offer advisory services.