When do u trust a strategy?
There are a lot of strategies and systems in forex. You can find all sort of strategies, systems and indicators by searching. Some look very simple yet effective and some look very complex.
How do you test a strategy? on demo or live.
When do u consider it successfull? Based on more $$$ or more pips? or maybe you prefer more winning trades.
When do u consider it using on ur main account?
How do u compare two or more strategies?
The main things to look are:
1- Profitability
2- Testing period
3- Drawdown
4- Basic strategy (e.g. if martingale then u may not trust it even if it is highly profitable)
5- Average Pips per trade (more means better but this option is not valid for scalping strategies)
If all of the above are satisfactory then I will use it on my live account.
While comparing, I will check all of the above 5 points.
Stick to your rules
Originally posted by uniquetraderThe main things to look are:
1- Profitability
2- Testing period
3- Drawdown
4- Basic strategy (e.g. if martingale then u may not trust it even if it is highly profitable)
5- Average Pips per trade (more means better but this option is not valid for scalping strategies)If all of the above are satisfactory then I will use it on my live account.
While comparing, I will check all of the above 5 points.
You almost explained everything. More or less these are the main points. The difference in us can be between choosing values of these points. For example I may choose the one with at least 1 year positive performance and u may want to test it for at least 2 years.
Originally posted by illiterateThere are a lot of strategies and systems in forex. You can find all sort of strategies, systems and indicators by searching. Some look very simple yet effective and some look very complex.
How do you test a strategy? on demo or live.
When do u consider it successfull? Based on more $$$ or more pips? or maybe you prefer more winning trades.
When do u consider it using on ur main account?
How do u compare two or more strategies?
The problem starts when we use the strategy. So if the strategy is tested by someone else, I will not be satisfied unless that person is managing my account. If I want to use a strategy for my self then I will test it myself.
The good or ill of a man lies within his own will. – Epictetus
Originally posted by ironical
Originally posted by illiterate
There are a lot of strategies and systems in forex. You can find all sort of strategies, systems and indicators by searching. Some look very simple yet effective and some look very complex.
How do you test a strategy? on demo or live.
When do u consider it successfull? Based on more $$$ or more pips? or maybe you prefer more winning trades.
When do u consider it using on ur main account?
How do u compare two or more strategies?
The problem starts when we use the strategy. So if the strategy is tested by someone else, I will not be satisfied unless that person is managing my account. If I want to use a strategy for my self then I will test it myself.
Valid point. So what qualities in a forex system will satisfy you?
I think time-resilience with low drawdown is a good indicator. On the top of that, some good ROI would be appreciated! :)
I trust a strategy after I have back tested it in demo account first and made consistent profits with it and more than that I can rely on it only after I make some consistent and regular profits with the same .
when my strategy rules works at least %90 it means l can trust.to know that l have to test it for months and see the results.finding a good strategy is not enough the most important job is to follow it always.
Before I start implementing any strategy on my live account, I backtest it on a demo account!
Originally posted by FXlordBefore I start implementing any strategy on my live account, I backtest it on a demo account!
For how much time do u test it?
Before I start implementing any strategy on my live account, I backtest it on a demo account!
I think after testing on demo, an EA should be tested on a small real account. $50 or $100 account with micro lots enabled. Most of the times, EAs produce good results during demo-testing. But in live conditions, they fail to produce good results consistently.