Forex Trading How to Test a Strategy

[moonchild]

After learning Forex and understanding different strategies, you end up settling with one, so you might wonder how can I test a strategy before using it, this article is going to explain how to test a strategy easily.

Firstly, go to the four hour time frame, and scroll back as long as you can let's say three years back, then start looking for confluence for your strategy, wherever you see your strategy playing out get a notebook and record whether its is a win or loss, do it like 100 times, from there you will be able to know how accurate your strategy is.

For example lets say, bullish engulfing candle its my strategy, I will go back in time and take note of where it happens and then record the number of wins and losses, from there I would be able to know the accuracy of the strategy, anywhere around 60% is okay, but if you have anything lower than that then you will have to review your strategy or tweak it.

This process is called back testing, it gives you clarity on your strategy, if you have any experience with back testing please share with us in the comment section.

 

[oldbuddy]

I tried using the Martingale Strategy when I kept seeing YouTube videos from posters that swore it worked. If you bet tiny bets that lost until you had a certain number in a row (I think it was 6), it increased your odds of the next one being a winner. If the next one lost you double your bet again. It actually worked for a while, until I hit a streak of 15 losses and my 512 Satoshi bet doubled until it lost me over a million Satoshi and cleaned out my account balance. Remember, following that theory the most I could have won was 512 Satoshi.

 

[Asahi]

Fund withdrawing problem has become a very common issue among brokers because many brokers send withdrawn fund in receiver’s account at a late. This is really annoying for traders. However, Eurotrader never delays in sending back payments in receiver’s account.

 

[Jack Reacher]

Try to bring consistency in your trading. Combination of knowledge earning and moiré and more practicing can help traders bring consistency back in their trading. However, traders are less focused on it. Eurotrader’s narrow trading spread and high leverage must increase your return.

 

[Mary Frederick]

The more a trader understand the market reality, the more the market is profitable for him. So, turn the market profitable for you by adopting a good trading strategy. Eurotrader allows traders with a smooth trading platform including all technical tools and high security of funding. The broker also offers signals on and off to help traders gain profit.