Analyzing backtest results

Discussion in 'Strategy Building' started by NoDebt, Oct 23, 2014.

  1. NoDebt

    NoDebt

    Hi all, I trade Forex and have backtesting results of one pair. Method is mechanical, but I manually backtested it, it is based on M1 setups. Usually I trade from London open to close. I have a few questions.

    When I did a backtest I ignored the sessions and just took every single setup, now the question is if I trade only London session will my performance will be different because I would be missing trades and not taking every single setup that method generates or maybe everything would balance out because in real life you can't physically take every setup.

    My second question, if I start to trade multiple pairs, will it affect the consecutive losses number? From the results it is 5, but from Monte Carlo simulation it could be 10 with 99% confidence level. If I start trading more pairs could this number be even bigger? Thank you in advance.
     
  2. Sergio77

    Sergio77

    Read this before you increase your risk.