have you ever had a god strategy in your possession?
did you write it? or did you buy it?
I have used and have posted details of very profitable strategies and many of these are available through the usual sources - books, Google, Youtube etc. In fact over the years I donāt think I have ever used a strategy which I havenāt also described on babypips.
In reality its unrealistic to think that an inexperienced trader could devise a strategy that is more profitable than one that has already been devised and used elsewhere. But there are multiple profitable strategies out there. Google up a very simple strategy and demo trade it until you are able to run it with consistent profit.
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let me rephraseā¦ have you ever designed and coded your own tradng system? or did you use trading systems that you acquired from a third party? did these trading system(s) use the basic indicators or did they use another type of custom developed indicator?
Iāve never coded anything but I have designed my own strategies. Which have always turned out to be variations on established strategies that had been in use for years, decades. Some of these are for sale but al of them are available free somewhere. I tend to avoid using indicators except to confirm market sentiment or trend and help select the optimum market for a given strategy: I definitely would not use them to identify an entry or exit point.
Custom indicators are just not something I would see as necessary.
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hint: EVERY TRADING BOT contains at least one indicator. just because you dont see a graphical representation of it on your chart doesnt mean it isnt being used behind the scenes.
oh, i see, then your bots use the basic/free indicators and are therefore based on moving averages.
thank you.
Iāve never used a trading bot.
:-0
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ok @babygogo there is something to clear.
all back tests and / or stress tests are tests in ālaboratoryā environment, so you canāt expect 100% results from back test in live trading. The results should be consistent, it is all you can achieve as a retail trader.
you are right it is nonsense, this bot was overfitted.
to create back test properly, you need knowledge how to do it. It is advanced knowledge usually expensive.
traders which sell good product āclosing their shopā because results are real = it means they donāt have a clients.
final results depend on how you will use certain indicator
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No sir you are not correct my bot was not overfitted overfitted talks about how you know like when youāve got indicators that you using inside your bot which donāt even tell me that not all bots use indicators because Iām going to tell you something a fact of life is that every bot uses indicators just because they donāt show up on the screen doesnāt mean they donāt exist you can have an RSI or an macd that is the core of your trading bot but it doesnāt show a graphical representation of it on the screen are you with me okay so overfitting means you change the period variable for the the period you have two variables with an indicator you have the number of bars which isā¦ and then you have the size of the period which is the time frame if youāre on a 4-Hour bar then your your period size is 4 hours if itās daily bars then youāre on a daily.
When you talk about to create a back test properly you need knowledge how to do it it is advanced knowledge usually expensive I guess you miss the part that Iāve been programming for 40 years and Iāve been programming C for 32 years and Iāve been programming meta trader since the day it was released to the general public I guess you miss that I donāt pay for back testing and number two I donāt do back testing back testing is complete nonsense.
I am now wrapping down on 18 year prooject
Hi @silverf466 under other nickname ā¦ overfitting is to match indicators to history data to achieve better results. I told you in other topic that you can use candlestick pattern, and now I can tell you that you can use volume ( in some case ) or alternative data to create strategy. If you donāt want to do back tests, just donāt, it is your choice, but write āback test doesnāt workā is pure false, I have proof that back testing and algorithmic trading is profitable, world-class traders which use that kind of trading.
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everyone knows - the members and the staff
to be fair, he has (at least so far) been quite a bit less trollish under this persona than under some of his earlier ones
some if his āinformationā is still all over the place, of course, but thatās a widespread forum problem, not unique to this situation
for you and for me, it doesnāt matter anyway
itās a shame for people like Ethan who (through absolutely no fault of his own) lacks the experience to judge who is worth listening to and who is completely misinforming him, but āthatās forums for youā! 
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Thanks a lot for the visual aid, I found it very helpful.
Backtesting is a technique that uses past data to test how well a trading strategy would have worked in the past. This helps traders and investors evaluate the performance of their strategy without risking any money. It can also help identify flaws in the strategy and refine it for better results. However, itās important to remember that historical data may not be reliable, and backtesting is just one method to evaluate a strategy. Itās important to use other methods, too, like paper trading or testing in real time.
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Hmm, well Iām always open to hear from everyone and then make a judgment. But about the back-testing Iām getting confused. Iāve seen both believers and none believers front and both seems to have rational reasons.
Well, unexperienced, yes; idiot, no. I listen to everyone and then make decisions. So, whatās your idea about the topic @flamingoproxy
Thank you for the information Oli.
Well, if backtesting is seen as a mere illusion, it suggests that there might not be a āholy grailā in trading. This realization raises important questions about the dependability of strategies based on historical data. In the end, it appears that a traderās success relies on their ability to skillfully adapt to the ever-changing, dynamic market.
However, donāt let that discourage you! If youāre skeptical about the existence of a surefire trading methodology, you can always turn to forward testing. This approach will allow you to hone your skills and refine your strategies in a more practical and real-world setting. So, have Faith and embrace the challenges of the market as you continue to grow and learn.
On a personal note, I do believe the holy grail of trading exists. The real issue is whether you can recognize when and how to tap into its power in the market.
Many people fail to see that the holy grail is right in front of them, but they just donāt know how to apply it effectively.
Both backtesting and forward testing hold equal importance in trading. I think Babygogo just enjoys playing devilās advocate, aiming to provoke thought and encourage others to consider alternative perspectives.
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Seems rational. Well, Iām still learning so thereās nothing that I should worry about. I rather to focus on learning.
I think back testing is checking the previous state of the market. It gives traders an idea about the market movement and identifies analytical mistakes.
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