Forward Testing
Some good points in that article. However I would caution against putting too much weight in back-testing. Back-testing is useful in weeding out systems that have flaws. But, when it comes to consistent results in trading, the only sort that really matters is forward testing. This is the slow, boring, time-consuming sort, which is why most people try to avoid it. Once you have a system which fits your psychology, and wins more than it loses, try putting on about 4,000 trades with it. After that, I promise you'll be much more solid in you trading. You'll develop confidence both in yourself and in your system. Back-testing just won't do that.
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