Step 2 in the testing phase...
Open an account and fill with an amount you can afford to loose (you will propably loose with most new ideas so, be honest)
Trade, in real trades, the account using your specific strategy. Even if the account turns south, keep with your strategy.
Most traders loose because they tend to give up after the second or third loss - then the throw the baby out with the bathwater..
Life interferes with trading so, you will never achieve the same numbers as you do in backtest, you need to find out what you can really achieve in live trading. Be serious and keep at it.
Normally after 2-4 months or so, the account is either empty or the account doubled.
If doubled, for myself, this is a go. I then know how many "working" trades I can make on average in a month (trades adding to the balance)
So I can budget, decide when/how I will be paid from this account etc.
This also provides me with limits - I know how the account should behave in real trading so, when I go to a wage account I can quickly see if/when the account is behaving abnormally.
In other words - during forward testing I also create red light signals, green light areas etc. for the specific strategy.
Only after the above do I go live with a wage account. It may be a 6 month process but well worth the effort for myself.
There you go - a short explanation of how I go from a strategy to a wage account.
Hope this may help some young up and coming trader somewhere..
Open an account and fill with an amount you can afford to loose (you will propably loose with most new ideas so, be honest)
Trade, in real trades, the account using your specific strategy. Even if the account turns south, keep with your strategy.
Most traders loose because they tend to give up after the second or third loss - then the throw the baby out with the bathwater..
Life interferes with trading so, you will never achieve the same numbers as you do in backtest, you need to find out what you can really achieve in live trading. Be serious and keep at it.
Normally after 2-4 months or so, the account is either empty or the account doubled.
If doubled, for myself, this is a go. I then know how many "working" trades I can make on average in a month (trades adding to the balance)
So I can budget, decide when/how I will be paid from this account etc.
This also provides me with limits - I know how the account should behave in real trading so, when I go to a wage account I can quickly see if/when the account is behaving abnormally.
In other words - during forward testing I also create red light signals, green light areas etc. for the specific strategy.
Only after the above do I go live with a wage account. It may be a 6 month process but well worth the effort for myself.
There you go - a short explanation of how I go from a strategy to a wage account.
Hope this may help some young up and coming trader somewhere..