Thread: Does backtesting work?

Some platforms, like NinjaTrader, offer a tick authentic Market Replay attribute.

It actually depends on your egy. Backtesting for scalping is basically worthless because it doesn't include slippage and raised spreads. If your pip expectancy is 10pips or reduced, you shouldn't count on back testing at all. I really do think its a fantastic indior to show you just how profitable your EA may be but you should still forward test it to support.

I think back testing could be useful, but it's often taken too far. It is more useful for system traders and traders which use indiors than traders that trade with price action alone such as myself. However, everyone backtests on some degree though. Even if all that means is looking back at a few charts and seeing a pattern which has happened a couple of times. This is done to give the trader a notion that the pattern is capable of repeating some relative frequency. After all, you cannot gain a border unless you have a positive condition that is prone to repeating itself. The problem with backtesting is the curve matching is done. To expand, the time period under which the evaluation is applied may or may not correlate to current market requirements. Many egies can work under the ideal conditions, but no egy works under all market requirements. Forward testing isn't fool proof for the very same reasons. It isn't important if it backwards or forward. As soon as you trade live, you don't have any clue what kind of market conditions you may encounter.

Hi! I have a issue and I can't open new topic so please can you help me here.

I'm attempting to check my egy. I try to try it in a manner as if I will test robots only load my own template. It is necessary for me that the chart opens as in actual life only faster. And there's a problem... The results aren't exactly the same as in ”actual” chart. The day shown at the ”actual” chart resembles smoothed while that identical day at the egy tester is more rough and the indior has more moves.
I'd love to know what the results are correct. The indior isn't important because I note the exact same issue in a lot of them.

Thank you!

Originally Posted by ;

It really depends upon your egy. Backtesting for scalping is basically useless because it doesn't include slippage and increased spreads. In case your pip expectancy is 10pips or reduced, you shouldn't rely on back testing in any way. I really do think its a good indior to show you just how profitable your EA might be but you need to still forward examine it to support.

Good point; however I got good result for a swing trader! Incidentally, I used this characteristic of trading after my demo.

Go forward .test in actual time.and you'll be rewarded .

No one can say no unless he/she understands every egy on the market. Yes off course! IMO it depends on the sort of egy you're using: I do not trust chart patterns, just indiors based on moving averages