Back Testing - Evaluating your Trading Strategy 101
Backtesting of technical methods in light of past prices is the most popular testing strategy among technical traders.Below is a short list that will get you started;
1. How many trades does it generate? ..............................................
2. Whats the reliability of the system? ...............................................
3. How big is the average profit compared to the average loss? .............................................................................
4. Many more..............
#Remember that you need enough data to create at least 30 trades in each test #
Please let me know if you would like to know more :)
Happy Trading
"success occurs when opportunity meets preparation" Zig Ziglar