Everything you need to know about backtesting

What is backtesting on Forex?

In technical analysis, backtestingis described as an act of simulating the process of trading whilst using a set of rules over previous price data, to see how much money would have been made or lost if a trader had followed the same strategy

For Forex traders, backtesting evaluates the effectiveness of a trading strategy and gives traders the confidence to stick to it at times when their strategy doesn't appear to be working (whilst others doubt their strategy, especially during a drawdown).

If you are not backtesting, you are hunting in the dark.

Why is it important to back-test your strategy?

Did you know that 78% percent out of all traders don't backtest?

And did you know that this is one of the main reasons why 78% of the traders fail?

With that being said, calling backtesting anything less than important would be an understatement.

Backtesting is absolutely CRUCIAL for your long-term trading success. It is only through backtesting, one can learn the ins and outs of their strategy and find out which strategies are profitable and eliminate those doomed to fail. And at the end of the day, nobody wants to be chasing shadows in the market.

Why is it important to back-test your strategy?

Did you know that 78% percent out of all traders don't backtest?

And did you know that this is one of the main reasons why 78% of the traders fail?

With that being said, calling backtesting anything less than important would be an understatement.

Backtesting is absolutely CRUCIAL for your long-term trading success. It is only through backtesting, one can learn the ins and outs of their strategy and find out which strategies are profitable and eliminate those doomed to fail. And at the end of the day, nobody wants to be chasing shadows in the market.