Software Testing Framework for the Financial Market

David Ademola Oyemade

doi:doi:10.11648/j.ajsea.20241201.15

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Software Testing Framework for the Financial Market

David Ademola Oyemade^*

Published in American Journal of Software Engineering and Applications (Volume 12, Issue 1)

Received: 23 May 2024 Accepted: 6 June 2024 Published: 19 June 2024

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Abstract

A well designed, developed and tested software is usually reliable and it produces the same consistent outputs for a set of inputs. However, financial markets software is different because it can produce different results for the same periods of back-testing with the same input historical data, usually downloaded from the financial market broker’s trading server. These inconsistency of results can confuse a financial market software developer when testing for the profitability of developed expert advisors because a profitable expert advisor can be wrongly discarded as unprofitable, leading to frustrations. This problem can be addressed when new software testing processes and indicators are added to the conventional ones such as functional testing, performance testing, usability testing, etc., associated with normal software development. This paper proposes a software testing framework for the financial market with novel software testing processes and indicators. The proposed software testing framework integrates six software testing processes namely, brokers test, currency pairs test, spread test, weekday-weekend test, back testing-live test and time and space overhead test. The paper further analyzes the problem of time and space overheads associated with the financial market software during back-testing and real life implementation. The framework was applied to real life trading in the Forex financial market. The results show that the proposed framework improves the profitability of the financial market software when applied in different scenarios.

Published in	American Journal of Software Engineering and Applications (Volume 12, Issue 1)
DOI	10.11648/j.ajsea.20241201.15
Page(s)	36-43
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Software Testing, Software Development Life Cycle, Framework, Forex, Financial Market, Expert Advisor

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APA Style

Oyemade, D. A. (2024). Software Testing Framework for the Financial Market. American Journal of Software Engineering and Applications, 12(1), 36-43. https://doi.org/10.11648/j.ajsea.20241201.15

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ACS Style

Oyemade, D. A. Software Testing Framework for the Financial Market. Am. J. Softw. Eng. Appl. 2024, 12(1), 36-43. doi: 10.11648/j.ajsea.20241201.15

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AMA Style

Oyemade DA. Software Testing Framework for the Financial Market. Am J Softw Eng Appl. 2024;12(1):36-43. doi: 10.11648/j.ajsea.20241201.15

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@article{10.11648/j.ajsea.20241201.15,
  author = {David Ademola Oyemade},
  title = {Software Testing Framework for the Financial Market
},
  journal = {American Journal of Software Engineering and Applications},
  volume = {12},
  number = {1},
  pages = {36-43},
  doi = {10.11648/j.ajsea.20241201.15},
  url = {https://doi.org/10.11648/j.ajsea.20241201.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajsea.20241201.15},
  abstract = {A well designed, developed and tested software is usually reliable and it produces the same consistent outputs for a set of inputs. However, financial markets software is different because it can produce different results for the same periods of back-testing with the same input historical data, usually downloaded from the financial market broker’s trading server. These inconsistency of results can confuse a financial market software developer when testing for the profitability of developed expert advisors because a profitable expert advisor can be wrongly discarded as unprofitable, leading to frustrations. This problem can be addressed when new software testing processes and indicators are added to the conventional ones such as functional testing, performance testing, usability testing, etc., associated with normal software development. This paper proposes a software testing framework for the financial market with novel software testing processes and indicators. The proposed software testing framework integrates six software testing processes namely, brokers test, currency pairs test, spread test, weekday-weekend test, back testing-live test and time and space overhead test. The paper further analyzes the problem of time and space overheads associated with the financial market software during back-testing and real life implementation. The framework was applied to real life trading in the Forex financial market. The results show that the proposed framework improves the profitability of the financial market software when applied in different scenarios.
},
 year = {2024}
}

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TY  - JOUR
T1  - Software Testing Framework for the Financial Market

AU  - David Ademola Oyemade
Y1  - 2024/06/19
PY  - 2024
N1  - https://doi.org/10.11648/j.ajsea.20241201.15
DO  - 10.11648/j.ajsea.20241201.15
T2  - American Journal of Software Engineering and Applications
JF  - American Journal of Software Engineering and Applications
JO  - American Journal of Software Engineering and Applications
SP  - 36
EP  - 43
PB  - Science Publishing Group
SN  - 2327-249X
UR  - https://doi.org/10.11648/j.ajsea.20241201.15
AB  - A well designed, developed and tested software is usually reliable and it produces the same consistent outputs for a set of inputs. However, financial markets software is different because it can produce different results for the same periods of back-testing with the same input historical data, usually downloaded from the financial market broker’s trading server. These inconsistency of results can confuse a financial market software developer when testing for the profitability of developed expert advisors because a profitable expert advisor can be wrongly discarded as unprofitable, leading to frustrations. This problem can be addressed when new software testing processes and indicators are added to the conventional ones such as functional testing, performance testing, usability testing, etc., associated with normal software development. This paper proposes a software testing framework for the financial market with novel software testing processes and indicators. The proposed software testing framework integrates six software testing processes namely, brokers test, currency pairs test, spread test, weekday-weekend test, back testing-live test and time and space overhead test. The paper further analyzes the problem of time and space overheads associated with the financial market software during back-testing and real life implementation. The framework was applied to real life trading in the Forex financial market. The results show that the proposed framework improves the profitability of the financial market software when applied in different scenarios.

VL  - 12
IS  - 1
ER  -

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Author Information

David Ademola Oyemade

Department of Computer Science, Federal University of Petroleum Resources, Effurun, Nigeria

Contact Email

http://orcid.org/0000-0003-4390-095X

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APA Style

Oyemade, D. A. (2024). Software Testing Framework for the Financial Market. American Journal of Software Engineering and Applications, 12(1), 36-43. https://doi.org/10.11648/j.ajsea.20241201.15

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ACS Style

Oyemade, D. A. Software Testing Framework for the Financial Market. Am. J. Softw. Eng. Appl. 2024, 12(1), 36-43. doi: 10.11648/j.ajsea.20241201.15

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AMA Style

Oyemade DA. Software Testing Framework for the Financial Market. Am J Softw Eng Appl. 2024;12(1):36-43. doi: 10.11648/j.ajsea.20241201.15

Copy | Download

@article{10.11648/j.ajsea.20241201.15,
  author = {David Ademola Oyemade},
  title = {Software Testing Framework for the Financial Market
},
  journal = {American Journal of Software Engineering and Applications},
  volume = {12},
  number = {1},
  pages = {36-43},
  doi = {10.11648/j.ajsea.20241201.15},
  url = {https://doi.org/10.11648/j.ajsea.20241201.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajsea.20241201.15},
  abstract = {A well designed, developed and tested software is usually reliable and it produces the same consistent outputs for a set of inputs. However, financial markets software is different because it can produce different results for the same periods of back-testing with the same input historical data, usually downloaded from the financial market broker’s trading server. These inconsistency of results can confuse a financial market software developer when testing for the profitability of developed expert advisors because a profitable expert advisor can be wrongly discarded as unprofitable, leading to frustrations. This problem can be addressed when new software testing processes and indicators are added to the conventional ones such as functional testing, performance testing, usability testing, etc., associated with normal software development. This paper proposes a software testing framework for the financial market with novel software testing processes and indicators. The proposed software testing framework integrates six software testing processes namely, brokers test, currency pairs test, spread test, weekday-weekend test, back testing-live test and time and space overhead test. The paper further analyzes the problem of time and space overheads associated with the financial market software during back-testing and real life implementation. The framework was applied to real life trading in the Forex financial market. The results show that the proposed framework improves the profitability of the financial market software when applied in different scenarios.
},
 year = {2024}
}

Copy | Download

TY  - JOUR
T1  - Software Testing Framework for the Financial Market

AU  - David Ademola Oyemade
Y1  - 2024/06/19
PY  - 2024
N1  - https://doi.org/10.11648/j.ajsea.20241201.15
DO  - 10.11648/j.ajsea.20241201.15
T2  - American Journal of Software Engineering and Applications
JF  - American Journal of Software Engineering and Applications
JO  - American Journal of Software Engineering and Applications
SP  - 36
EP  - 43
PB  - Science Publishing Group
SN  - 2327-249X
UR  - https://doi.org/10.11648/j.ajsea.20241201.15
AB  - A well designed, developed and tested software is usually reliable and it produces the same consistent outputs for a set of inputs. However, financial markets software is different because it can produce different results for the same periods of back-testing with the same input historical data, usually downloaded from the financial market broker’s trading server. These inconsistency of results can confuse a financial market software developer when testing for the profitability of developed expert advisors because a profitable expert advisor can be wrongly discarded as unprofitable, leading to frustrations. This problem can be addressed when new software testing processes and indicators are added to the conventional ones such as functional testing, performance testing, usability testing, etc., associated with normal software development. This paper proposes a software testing framework for the financial market with novel software testing processes and indicators. The proposed software testing framework integrates six software testing processes namely, brokers test, currency pairs test, spread test, weekday-weekend test, back testing-live test and time and space overhead test. The paper further analyzes the problem of time and space overheads associated with the financial market software during back-testing and real life implementation. The framework was applied to real life trading in the Forex financial market. The results show that the proposed framework improves the profitability of the financial market software when applied in different scenarios.

VL  - 12
IS  - 1
ER  -

Copy | Download