fozzy backtesting

I’m a forex trader rookie… still working on demos accounts… I was really impressed by the fozzy method… incredibly simple, profitable, and low risk way of trading. I’ve been testing the EA for some time now (the one posted at http://www.forexfactory.com/showthread.php?t=8527)

I was wondering if any of you guys have backtesting data that you could share using this method… specially with the EA posted

I know that backtesting has serious quality problems… im just looking for additional criteria before jumping to real accounts…

Thanks!

please read the rest of the threads under fozzy. there is also a journal by artamon. all your answers there.

if you dont mind, please dont start a separate THREAD for this. that should be for something much more significant.

be careful with all these EAs, they might work very well in a certain market but they don't necessarily work all the time.

Hi Ratrace.

This is my first post on this excellent Forum.
I have been trading live for about 18mths, not happy with the returns, so I have looked further afield to see what you guys in the Northtern half of the world are up to.

Ratrace, I think you have asked a valid question, wherever you post it. I too would like to backtest Fozzies' way of trading. The problem is, having read Fozzies method (ok, ok, I'm only up to page 84), that the original posting Fozzy put out explaining his way of trading has changed so much over the course of the thread that it hardly resembles the original posting and I don't know WHAT to backtest.

As far as backtetsing goes Ratrace, take it from me, take a look at the last 12months of a currency pair that you think may suit the way you want to trade, if it looks ok, go waaaay back to at least the year 2000 and start backtesting up to the current date.

1) Don't forget to take into acct your spreads when calculating stops and profits/losses.

2) DO NOT CHANGE any aspect of your SYSTEM/METHOD as you progress through the years, if you do change even one little part of it, YOU HAVE A DIFFERENT SYSTEM....start again and throw out all the old stuff. This is why real backtesting is a pain in the rear end.

There is a word I have seen used a lot lately, the word is DISCRETION.
If you are going to use discretion in your way of trading, you are not using a system, ie: you are not using something that CAN be backtested. You cannot say "I have backtested my way of trading over the last 10yrs" if you use discretion. A system (or method - whatever you want to call it) is a mechanical way of trading where you take EVERY signal generated and don't deviate from the rules of your system, such as entry method, stop loss, risk, exit rules.
Some people are changing parts of their way of tading to suit the last loss. That is not a true reflection of how that currency pair has performed over the last 10 yrs!

Lastly, people use different terminolgy for the same thing, please advise on what an EA - Expert Advisor? is. I have'nt heard this expression before, but I think I want one!!

Good luck.

Don't bother with the EAs. Backtest by hand, manually. Make notes on why you would take a trade, and why you wouldn't. Study those notes, and then apply it to forward testing (paper trading). Make notes on the failures, and make notes on the winners, adjust, adapt, conquer.