I just completed pipschool and am trying to create and backtest a system.
Does anyone have any advice on what indicators have worked for them?
Or do have any other advice or starting a new system?
Or a system they are currently working with that works?
[B]What is the best way to go about backtesting a system?[/B]
I have found places to get the free data, but dont know where to go from there? Is the only option buying one of the $100 plus backtesting software programs? Or is there a free system you can import the date to?
Before you can do anything else you need to make some decisions. What timeframe are you going to trade in? What pair or pairs are you going to trade. What is the objective of your trading system in terms of pips or % return over a given time span, etc. Lay the groundwork first. That will make the process of finding or building a good system much more efficient.
In terms of free software for testing, Microsoft Excel - assuming your already have it on your computer.
I am most familar with the EUR/USD and would like to stick with that. As for timeframe I think that day trade best fits my goals. After demoing for a while my goal from day trading would be to make around 50-100 pips a week. I would like to mix in some trends and also some effective scalping.
Does anyone have a good method or template for backtesting in excel. I would really appreciate any and all help.
I have posted 2 files. One is for testing USD backed pairs and the other for JPY backed pairs. They are different because USD pairs calculate to 4 decimal points and JPY only to 2 decimal points. Take a look and let me know if you have questions.