Does backtesting work? - Page 3
Page 3 of 616 FirstFirst 12345 ... LastLast
Results 21 to 30 of 57

Thread: Does backtesting work?

  1. #21
    Nik13... thank you for the informative post(s).

  2. #22
    Quote Originally Posted by ;
    ... thank you for the informative post(s).
    Hope it helps, in that case, then always welcome.

  3. #23
    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!) .

  4. #24
    Quote Originally Posted by ;
    nobody can say no unless he/she knows every egy out there. Yes off course! IMO it is dependent upon what sort of egy you're using: I don't trust chart patterns, just indiors based on moving averages
    I am not stating that indiors don't function in Foreign Exchange,

    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.

  5. #25
    Quote Originally Posted by ;
    quote I'm not saying that indiors do not function in FX, however, everyone knows, that most of the indiors were designed for stocks, therefore everybody knows, that stock are transferred from MM's and mortals like me and you, so stock indiors provide us plogical info and everyone is doing the same, for example, if indior A shows, that market is overbought, compared to most of the traders go short and vice versa. Since FX is transferred by Market and not by traders (well, may be some of those ticks are due to BSD's) do you believe that...



    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.

  6. #26
    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.

  7. #27
    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.

  8. #28
    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,

  9. #29
    Quote Originally Posted by ;
    Should I practice a egy using Forex Tester, then would this still be thought backwards testing ? This is the only way it is likely to forward evaluation a egy. Can I presume that market requirements are mimicked and it provides experiance in a shorter time? I know that the plogy of having actual money online is not experiance. Thanks for your responces, Yana
    the response is

    Quote Originally Posted by ;
    quote Backtesting should be used simply to confirm that the stretegy is trading according to the rules ... Never to look at its profitability.
    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.

  10. #30
    Quote Originally Posted by ;
    I purchased the forextester a few months ago but I always caught myself 'cheating' and fast forwarding during more dull times. I personally find that backtesting did not work for me, but maybe it is a personal thing. It eliminates all emotions and the emotional effect for me which I found have the largest effect during my trading. Just my 2 cents Rex
    Bought?

    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

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
This website uses cookies
We use cookies to store session information to facilitate remembering your login information, to allow you to save website preferences, to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners.