There seems to currently be a variety of historical data providers specifically for forex back-testing, but which ones are the best? And isn't the the key to success having the proper back-testing available? Software should be easy to understand and download, and all data should be clear and updated.
When trading data is forex back-tested, all stress in regard to trading is eliminated because data shows which situations were winning ones and what strategies worked better than others. With this information right in front of the investor's eyes, trading becomes much more fruitful in anticipation of profitable returns. Some traders claim they are much to busy to back-test, but this only causes them to become shortsighted and stressed because they do not remember their trading data.
Trading will become much more profitable when forex back-testing is implemented and data is available to study the characteristics of past trades. The truth is, nobody wants to lose money on a trade although losses will and do occur. But if given the chance to shorten their losses and improve their profits, what trader would disagree to back-test? The best secret to viewing previous data is to build the habit of back-testing, so that it becomes a natural act like brushing the teeth or combing the hair.
Some methods of forex back-testing are, the Manual back-test, which is a slow testing where the investor tests one piece of data at a time. It is thorough, concise, and teaches the trader to keep accurate records. Another is Back-testing Software, which is much easier than the manual method by picking out which trade techniques were done well and which ones were not, and trading it out if it doesn't work anymore. An investor may also program a trading system by asking a system to backtrack trading techniques, also called automatic back-testing. Of course, this system is easiest for those with computer programming expertise, and not for the average trader who may prefer manual testing to that of an electronic robot. Even with the easier system, manually checking from time to time will still be mandatory to keep the upgrades and information complete.
When trading data is forex back-tested, all stress in regard to trading is eliminated because data shows which situations were winning ones and what strategies worked better than others. With this information right in front of the investor's eyes, trading becomes much more fruitful in anticipation of profitable returns. Some traders claim they are much to busy to back-test, but this only causes them to become shortsighted and stressed because they do not remember their trading data.
Trading will become much more profitable when forex back-testing is implemented and data is available to study the characteristics of past trades. The truth is, nobody wants to lose money on a trade although losses will and do occur. But if given the chance to shorten their losses and improve their profits, what trader would disagree to back-test? The best secret to viewing previous data is to build the habit of back-testing, so that it becomes a natural act like brushing the teeth or combing the hair.
Some methods of forex back-testing are, the Manual back-test, which is a slow testing where the investor tests one piece of data at a time. It is thorough, concise, and teaches the trader to keep accurate records. Another is Back-testing Software, which is much easier than the manual method by picking out which trade techniques were done well and which ones were not, and trading it out if it doesn't work anymore. An investor may also program a trading system by asking a system to backtrack trading techniques, also called automatic back-testing. Of course, this system is easiest for those with computer programming expertise, and not for the average trader who may prefer manual testing to that of an electronic robot. Even with the easier system, manually checking from time to time will still be mandatory to keep the upgrades and information complete.
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