Ok , lets say i decide the rules of my strategy , i will build x trendlines based on x factors and i will buy or w/e when price moves on x point , now what happens when a trader dont find any trade that meets his criteria? i mean whats the typical schedule of a trader? i guess a proffesional will have great adaptibility but a noob like me for example what can he do? how often can i search the market? do i have to stay on my pc and search the lobby with currencies all day long until something shows up? are there programs who alert you about specific conditions? how often do you search the lobby? Btw what exactly is backtesting? do you make X trades with a specific system on your demo until you see if its profitable or not and if thats the case how many trades are required to even out variance? , or is it somekind of simulation that ends fast , mt4 has a strategy tester option between x dates in the past but it has specific indicator and stuff you can use , its kinda strange , probably requires some programming , i dont know quite how it works but looks faster.
Oh backtesting is the simulation of past data but i dont get it how it works , i used the strategy tester of mt4 , does it search past charts with similar patterns on them like the current one i have on mt4? it also seem like i have to use indicators and stuff like that. Do i have to code anything? generally how does someone backtest?
Take a pie (let's say a 10" pecan) It can be cut in 2 slices..., 4 slices..., 16 slices..., 100 slices..., 2,435,398 slices... so on so forth Which number of slices is optimal And no matter how many slices - it is still the exact same pie *thinkaboutit* You want to trade (I assume..., and your line of questioning here is not simply an exercise in mental masturbation..., there ample of those already) Instrument to trade - choose - back test it Platform layout - choose - back test it TTF - choose - back test it How will you trade - choose - back test it Way / how to determine the environment - choose - back test it Way / how to determine mkt / price's direction - choose - back test it What signal.., pattern..., event..., time of day - you will trade - choose - back test it Where to set a SL - choose - back test it When to get out with profit - choose - back test it What type of order to use - choose - back test it Way of determining when it best to sit on hands - choose - back test it And more I'm not adding/ forgetting What ever it is - choose - back test it ============== Then Put it all together - back test it Modify as necessary Then SIM it Then Go live with small size RN
The problem is not what to choose but how to choose it and program it , i have no idea lol and i dont understand , can i backtest individual conditions? i mean backtesting isnt about showing the profitability of my total strategy? i also saw someone trade who had all his requirements typed in his chart like: Volume=? price=? trade plan=? If most agreed or all he would buy , i like that , it appears technicals shouldnt require much manual work if you program your requirements. I get a better feeling about trading , you have many tools at your disposal , all of them say either yes or no , all of them offer a smallish % of win so the trick is for all of them to agree , if they dont then the trade isnt safe.