Nik13... thank you for the informative post(s).
Back testing has it's set. Most programmers will back evaluation to guarantee EA's are following the principles set out.
Back testing together with the stock OHLC data shouldn't be used to check profitability. I mean you could do it but you may likely be misled.
A more accurate way to check a egy's profitability using back testing would be to utilize accurate tick data.
Luckily, Dukascopy has a huge archive of tick data at no cost. Their OHLC data is pretty rubbish though (sometimes off with a couple hundred pips!) .
I am not stating that indiors don't function in Foreign Exchange,Originally Posted by ;
but, everybody knows, that most of the indiors were designed for stocks, therefore everybody knows, that stock are moved from MM's and mortals like you and me, therefore stock indiors give us plogical info and everybody is doing the same, for example, if indior A shows, that market is overbought, than most of the traders go short and vice versa.
Since Foreign Exchange is moved by Market rather than by traders (well, might be some of these ticks are due to BSD's) would you think that indiors might give us some very worthy information? Like : if RSI is under 20 degree, than it's more likely to go long. WHY THE HELL? Nobody cares where the RSI is, badly...
while you are not looking for easy statistical entrance point, I believe using indiors in Foreign Exchange is actually useless.
I am not responding, just sharing view.
Best regards and green pips to you.
Originally Posted by ;
Truly stocastic systems may be used to predict many things: from long term weather to population growth.... I use it in FX trading plus it works
Lol it's not about moving the price, instead trying to predict its behavior, using statistical information.
Now of course, if you take all the egies out there, operate hundred of backtests, unite them with others and backtest again... try various SL/TP/timeframes. Even if you do so every day, it may take YEARS to get a grasp.
P.s. exuse me if my English is not perfect.
I believe backtesting functions, but you have to be mindful not use a lot of factors, otherwise you're just curve fitting. Simple systems work the best.
Backtesting utilizing a Monte Carlo motor might be good also, but I have never tried implementing it.
Back Testing is an excellent resource.
I utilize back testing all of the time to understand the micro facets of the trade methodology. It's another way to create the crucial principles of any method.
It shouldn't be used for the fantasies and hopes of earning money. It can be evil to your plogical mind set especially if you're back analyzing more money then you actually have. And so, I prefer to back test using 1,000 and only 1% per trade. It makes mathematics really easy because everything can be multiplied into 1 without a calculator. Another great way to back testing is printing out every week and analyzing every bar to see how it responded throughout x time period (day, week, month).
One final thing I'd recommend is to back test the same method that you are trading live. Never facet from that. If you decide to stray away in the method you are trading live in your testing. Than you should stop trading live. Have a break. I trade back and live test what I am trading. Helps me stay clean with the plan. Like second character.
Should I practice a egy using Forex Tester, then would this still be thought back testing ?
This is the only way it is possible to forward evaluation a egy.
Could I assume that true market conditions are mimicked and therefore it gives experiance in a shorter period?
I know the plogy of having real money on the line isn't experiance.
Thanks for your responces,
the response isOriginally Posted by ;
I do back experimenting with Currency Market tester simply to test out the technical egy , it can quickly forward the chart and rescue my time , some times the habit indior can not work so I try the fundamental first how to go into the position and how to exit , after that I produce the rule , in real time trading I am still using demo account and try stick to this rule.Originally Posted by ;
Bought?Originally Posted by ;
Really? Why do you need to buy it?
I am don't want to sound horrible but we've got free StrategyTester on MT4.
Does forextester have special items?
Stay green buddy