Forex Backtesting

What is backtesting?

Backtesting is essentially the testing of a trading technique employing historical market prices, to see how top notch that system can be. This testing is usually done providing computer program that runs the trading system within a range of time in the past. Forex Backtesting

Why beware of backtesting?

Many new traders think that good backtesting results will guarantee similar results in the future. This is a big mistake because a system that has worked in the past may not necessarily work in the future. This is because the Forex market is always changing and evolving. The Forex market today can be very different from the market last year. The past does not equal the future… if it did, we’d all be millionaires by now!



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