Tutorial forex trading how to backtest a trading strategy |

Hey everyone,  this is  Forex Successful  trader D.D.Chaudhary.

Today i am  going to show you How to backtest  and create a trading  strategy. 

                The first thing your going to need in order to do this is some kind of charting package . for today example we are going to be using tradingview.com. The second thing you will need is a spreadsheet of some kind. I downloaded libre office for this.Libre office is an absolutely free application that you can use and it works very similar to excel. the next step is going to be to figure out what kind of trading strategy we are going to use. for today i am just going to use a very simple Double top,double bottom trading strategy.So now that we know what kind of strategy we are going to be testing, i am going to go over to our spreadsheet and go ahead and type in  a title for this specific strategy

Spreadsheet in excel for demo

create excel in spreadsheet Title, Pair,Date ,Time, Stop-loss,Profit target, Profit&Loss $,Strategy name ,Before screenshort, After screenshort.

Next-Step

     Now that we have this set up our next step is to set up some rules for our stategy and  this is very important part. You want to make sure that you have very specific  rules in your strategy.so you know exactly when take to trade every single time  you see  it on the chart.that is the only way you are going to be consistent in what you trade because if you don't have rules for say ,a double top then is this a double top and if it is then is this or is this. so its very important to have a specific set of rules that you can follow every single time you Trade your Double top or Double Bottom. 

That applies for any type of trading strategy you create weather it be fibonochi based pattern based simple price action patterns anything,structure based patterns.Whatever you choose to create you need specific rules.

D.D.Chaudhary

Thanks Men for Read