What are the best tips for Forex backward testing?
The trader trying to test a new trading system should ideally use Forex backward software. The best software should allow the trader to easily load historical data, set graphs as preferred, use multiple time frames, store tests and revise them and more. The trader must understand that there are different factors that are likely to cause mismatch between the performance of back testing and the real strategy in live trading situations. Therefore, the trader must be wrong on the side of caution and use the appropriate business methods managed with risks, both in retrospect and live trading. Alternatively, the trader can avoid unnecessary costs using the costs provided by the forex broker that he currently uses or intends to use, as most of them provide commercial platforms that allow Forex backward testing. Automated Software means manual approach for taxation practicedSome traders may not be used. The trader must ensure that the software has all the functions that he intends to use in live trading, such as different time frames and different types of graphs.
The merchant may decide to take advantage of basic or technical analysis, or even both, while retreating to his strategy. In principle, for example, a trader may decide to sell the US dollar whenever the US federal system reduces interest rates or draws more money into the economy because the currency is likely to lose value as a result. Technically, for example, in a strong uptred, whenever a couple, such as the US dollar versus the Swiss Frank, pulls back and reaches a 10 -day gliding average, the trader can place an order as soon as he continues the climb.
It must also be careful about the sentiment and behavior of the market and its volatile inclination. The Tentonepine of the Market Tendencies can ofteninvalidate some of the aspects of the business strategy for investor backward testing. Therefore, it should maintain the flexible and open strategy. In addition, the risk management is strongly recommended and can be achieved by getting the habit of using the loss of stopping and the objective of the pattern. In addition, the investor should not risk a significant amount of his business capital. In general, the risk of more than 3 percent of money in the trading account may eventually have harmful effects.
6 This can potentially bring unfavorable results in a living situation, because the merchant's psychology is susceptible to irrational decision -making when real money is at stake. Therefore, the investor should develop self -confidence and then work on reining in his emotions. This will allow him to observe the market with a disturbing eye and behave as many in both situations.