moonchild
VIP Contributor
Okay, you just got a new forex strategy that will make you a lot of money and you can not wait to explore it and flaunt your results to your friends, I know you are excited but before you get started, here's what you should do, the forex chart consists of millions worth of trade data, your strategy has occurred a lot of times in the market so what backtesting is going back in time and then taking note on where your strategy occurred and then taking not if it is a win or loss.
After getting like 100 results you then calculate and see i it is profitable for you to trade or not, this will save you time from strategies that do not work and will allow to focus on the ones that work, if a strategy has a winning rate of anything between 60 percent above is definitely a good bet because it shows that in ten trades you will be able to win 6.
You should give back testing a trial before you start using a strategy, most strategies that involves complex indicators might give you a false result so you have to beware, the simpler the strategy, the better.
After getting like 100 results you then calculate and see i it is profitable for you to trade or not, this will save you time from strategies that do not work and will allow to focus on the ones that work, if a strategy has a winning rate of anything between 60 percent above is definitely a good bet because it shows that in ten trades you will be able to win 6.
You should give back testing a trial before you start using a strategy, most strategies that involves complex indicators might give you a false result so you have to beware, the simpler the strategy, the better.
