How to Test Your Trading System

Discussion in 'Trading' started by angelnish, Jul 17, 2012.

  1. The fastest way to test your system is to find a charting software package where you can go back in time and move the chart forward one candle at a time. When you move your chart forward one candle at a time, you can follow your trading system rules and take your trades accordingly.

    Record your trading record, and BE HONEST with yourself! Record your wins, losses, average win, and average loss. If you are happy with your results then you can go on to the next stage of testing: trading live on a demo account.

    Trade your new system live on a demo account for at least two months. This will give you a feel for how you can trade your system when the market is moving. Trust us, it is very different trading live than when you're back testing.

    After two months of trading live on a demo account, you will see if your system can truly stand its ground in the market. If you are still getting good results, then you can choose to trade your system live on a REAL account.

    At this point, you should feel very confident with your system and feel comfortable taking trades with no hesitation.
  2. Oh boy, sound like a post in a arpa-net bulletin board in the 1970s.
  3. Give him a few more posts and he will invent backtesting.
  4. He will never make it to full blown market replay.

  5. Not so. The acount will be full blown.
  6. trendo


    Who are the "us" you refer to?
  7. cute
  8. Due to obviously bearish technical and fundamental data on this thread, I strongly advise anyone not short, to get short immediately. Profit target: six pages of back and forth flaming.
  9. trolls