Back Test Guide
The Back Test Guide is a document to help you develop a new trade strategy or enhance a current trade strategy, through comprehensive back testing procedures. Use the document as a guide to develop your own process or follow the procedures provided step by step.
The guide will show you how to complete a comprehensive analysis of your Forex trading strategies, utilizing historical data to simulate performance and identify potential improvements. With our advanced tools and expert insights, we provide what you need to help optimize your strategies for better results.
The guide will be periodically updated based on new information and suggestions from members.
- Steps to develop a new trade strategy
- Enhance a current trade strategy
- Back test your strategy to determine its profitability
- Share and recieve insight from other traders
Proper back testing includes analyzing trades taken by your trade strategy, to provide essential information on what you should expect in a live market. Here are a few examples of essential information and tools.
- Multiple back test stages, starting with raw trade data results from your strategy tester or manuals trade results through a custom back test report.
- Tools to analyze things like; time period (year, month, day, hour) the number of trades, wins, losses, strike, profit, biggest loosing streak, biggest winning streak, unique parameters, risk %, leverage, spread etc
- For each trade specific information based on the essentials of your strategy.
- Account management information for each time period (year, month, day, hour) such as draw down, minimum balance, withdraws, lowest minimum balance, lowest balance/equity, trade volume adjusted by risk and account value etc.
- User inputs to affect change on results, such as account size, leverage, SL, Risk %, Risk $, Lot Size, Minimum $ Required To Trade, Equity Required To Maintain Account Minimum, Maximum $ Available To Trade.
- User inputs to affect change on results, such as excluding trading hours, weekdays, months etc.
Stop Guessing. Start Testing.
Stop relying on hope, signals, and random entries that lead to inconsistent results. Learn how to properly backtest your forex strategies using real historical data, measure what actually works, and refine your edge with confidence. Replace emotion with evidence and start trading with structure, clarity, and consistency.