I am a newbie and all throughout my lessons regarding about Forex, i encountered the word Backtesting.. what does it mean and it's importance and how it will gonna work? Your insights would be highly appreciated..Thanks..
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DislikedFirst you develop a trading strategy. For instance, "buy GBPUSD everyday at 8:00 am sharp, SL 50, TP 50 pips, risk 5% of the account".
With the backtest you will verify how many times it was profitable and how many it wasn't it in the past understanding that this win/loss ratio will be the same in the future.
P.S. This is just a example, not a strategy I use or advise.Ignored
QuoteDislikedthe best way of performing BACKTESTING
Disliked{quote} Second, you go back to in time let's say last year (or 100 trade) and try to apply your strategy on the chart.Ignored
DislikedHi, I am new and want to know the best way of performing BACKTESTING.. any advice is appreciated. Thanks! NawinIgnored