Hello, I am trying to test my first trading system that seems to fit my personality. I’m excited that I am actually giving it a go. Do I remind you of the moment you were making ur first system?
The pipsology said that I need to find a charting software that I can do the back test. I’m currently using Oanda chart programme. I don’t think I can do the test with this platform.
I guess MT4 is the one can do that. Do you have any recommendation or advice?
Meta Trader 4 has a back test system called Strategy Tester where you enter your trading system in the form of an Expert Advisor script and it simulates how well your strategy would have done over a given period of time. I’m not really sure how it works, nor how useful backtesting really is, but the following Youtube video will show you how to open and use the Strategy Tester:
MetaTrader 4 Backtest - loading Strategy Tester - MetaTrader 4 Backtest - loading Strategy Tester
I wouldn’t use the MT4 Strategy Tester. The most valuable thing about backtesting is not the actual results, but seeing with your own eyes what’s happening with your system over a long period of time.
If you use the Strategy Tester all you’ll get is a few numbers as your result, but if you scroll your charts back and move forward one candle at a time, testing your system as you go, you’ll learn a LOT about your system! That can be more valuable than the actual results, because even if the results are bad you might realize why the system isn’t working and correct the problem.
Ah, good answer, Phil.
Now I have learnt something very useful about backtesting myself.