Initially I used to avoid back testing because I didn’t know its importance. But off late I have started to back test the market.
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I bought Forex Tester 5 a few months ago and I consider it being one of the best investments for me to learn more about trading - my phycological trading issues, pattern recognition, strategy testing on different timeframes and different indicator setups that fits me.
I take any given year and “trade through” it to then analyze my wins and losses according to my strategy. For example - I quickly found out that I am to greedy which in turn made me stay in to long in a trade, ending up losing money or breaking even when I could have made a profit.
I would say that the advantage with backtesting is that you can go through trades way faster since you step forward instead of only demo-trading (which I also do). With that gaining more experience. Also the fact that you can backtest different years since the market does not behave the same every year - some years are easier than others for your strategy.
You all have a good day now!
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Back testing allows me to assess how a strategy would have performed in the past and provides insights into its effectiveness before risking real money in live trading.
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Do you back-test all your strategies?
I try to back-test all strategies.
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In most trades that I back-tested the strategy leads to success.
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I think many people who ignore backtesting are simply not aware of its importance before executing a trade. I recommend checking this article to learn how to do it in TradingView:
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I find data collection quite important because it ultimatley gives the market direction.
Yes, data collection plays a significant role in understanding the market and determining its potential direction.
Has backtesting revolutionized accounts for everyone?