Hi, Amay here from India, I hope all of you are doing well and trying your best each and every day to achieve your dreams.
Let me give a brief about my trading, So, I have started trading since July-Aug 2023 and have been consistently trading, researching, practising, failing and learning. One thing I haven’t done yet is backtesting. I do use my strategies in demo accounts but many a times I tend to fall into impulse entries, I have controlled that but I do want to improve my entries and exits and refine my strategies more. So I think I am comfortable with price action and was trading support and resistance until I learned about supply and demand.
So can anyone who uses these strategies guide me to be a little more better at finding setups and how to execute them
Also, How and where can I backtest?
*And Is trading view a good option for backtesting? Asking this because I have a Macbook and MT5 has been banned in India so the only option left for me is to use web terminal based products rather than MT5.
Hi and welcome in BP community if you make impulse entries you not control it. PA is hard to back test because it is discretionary method, you can do some test by tradingview web. Regards Greg
Hello! I personally do all my backtesting in Forex Tester 5. Its a great programm and easy to use. There are some good youtube videos showing off the programm. It’s not free tho.
A weakness in trading off support and resistance is that the same trader will probably look at the same chart tomorrow and put these zones in different places. That does not mean they will not make money, but it means they are using more than one strategy and they don’t know which one they used on this trade and which one they used on another trade. This makes it very difficult to improve the strategy and to find a market on which it will currently work better - even good strategies do not work 100% all the time on every market.
Open a demo account. Identify a simple set-up before you open today’s charts. Define the set-up’s features very precisely - A, B, C, D, E. Then open the chart - if you do not see ABCDE, do not take the trade. If you see ABCDE, you absolutely must take the trade.
Yes, I am planning on using the free trial and if it really is providing value might go ahead and purchase it. If anyone has any reviews/ pro and cons I’m all earns. Also Trading view also let’s bar replay, isn’t that good for backtesting?
For trading view web, is the essential plan worth investing because my main motive is back testing and I would need multiple TF analysis, and I haven’t come across any traders who have explained or shown any backtesting on trading view web hence the doubt as to which platform to choose.
I am more aware of PA and support and resistance and planning to keep this as my go to strategy, so when I open up the chart, and I have time to trade both London and NY session. So what would constitute as a base for a good setup. I basically first go to the Daily TF analyse the trend, then place support and resistance, and then the 4H, then 1H then 30m and then take entry on the 15m or 30 but the probablility of a good execution is really very low.
Good Idea! I never used the barreplay from Tradingview, maybe it’s also a valuable option. Tipp for FxTester5: export your statistics to Excel so you can compare different strategies.
Thank you for the tip and I tried downloading the FXtester trial version and my doubt that it won’t work on macbook came true. It’s basically only made for windows for now. Also tried for parallels and vmware so I can have a windows paralleling running on my mac but it’s too outta my budget for now.
The set-up is what you see on the chart which in the first place supports a decision to enter a trade. It must identify the direction, and whether to enter immediately or to wait for a further chart confirmation. It should hopefully also identify where would be good levels to set a stop-loss or scaling out price levels, and potentially a profit-taking or scaling out or pyramiding price levels.
But the set-up is driven by your strategy. The strategy is The One Ring.
Ohhh mahn, if this is how it is, I’m taking trades left right and center, I mean not as much as before but I do tend to force some. This gives a little more perspective. Will def try to be more present. Thank you.
You’re right and I am currently in the verge of changing that hence I am opting for a platform which would let me backtest, till now I tried to take as many trades possible so to improve my strategy and trading as its the only time for me to practise. So my plan is to now back test more and take limited setups in my demo account. Taking multiple trades live on demo will just increase my bad habits which I don’t intent to increase.
If you trade using the Price Action methodology, I recommend not relying solely on backtesting due to potential discrepancies in quotes between brokers. Instead, it’s advisable to learn how to use stop and limit orders when trading with support and resistance levels. It’s important to analyze the senior timeframes (H1, H4, D1) to identify bullish or bearish trends, set appropriate support and resistance levels, and place pending orders based on the analysis.
Unfortunately I can not recommend a trading terminal as I use MT5.
Concentrate on finding areas on the chart where the price has made big moves in the past. These spots are called supply and demand zones. Also, it’s super important to know how much you’re willing to risk before you make a trade. Put your stop-loss orders a little bit past the other side of these zones to keep your trades safe.
if you make impulse entries you not control it. PA is hard to back test because it is discretionary method, you can do some test by tradingview web. Regards Greg
Also tried for parallels and vmware so I can have a windows paralleling running on my mac but it’s too outta my budget for now.