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This Is How We Backtest
By Marek W. Stupka | August 17, 2008
A student of mine did a wonderful job on backtesting one of my trading systems, The Confirmator. I took the liberty to present here his final results applied to GBPUSD. Observe the spreadsheet below…
The backtesting idea is not just about the pip gains and win to loss ratio! This testing has been applied on a system that I teach. This diligent trainee wrote down the rules, he followed those rules, and tracked his results.
May his approach be a great example for all of the traders out there! See, many traders I train never take the effort to backtest one single trade. This guy is on his path to become a very successful trader…
Note that in the table above, it is trading with the most conservative SL/PL that brings the best results with win percentage between 70-80%! On the contrary, aggressive trading (which I never recommend) lingers around the so much feared 50% win percentage. The point is clear. Don’t be aggressive. Stay conservative, at all times.
Topics: FOREX Trading Systems |
August 17th, 2008 at 9:47 pm
How can I backtest a trading system?
Do you teach this in your course?
I would like to know more about this. Please answer via email, thank you
August 18th, 2008 at 8:45 am
middleman, a comprehensive explanatory pdf and a video lesson on backtesting ANY trading system is included in the 1-on-1 training.
The only way for you to get it is to apply for my training course. I am sorry to say that, except for posting comments on this blog, I do not send advisory emails to traders that do not subscribe to my training. Visit http://www.gepardinvestments.com to apply.
Happy trading,
Marek