What do YOU use back testing for?
- Thread starter FixedGrin
- Start date
http://en.wikipedia.org/wiki/Backtesting
http://www.investopedia.com/terms/b/backtesting.asp
read this one carefully before you backtest:
http://www.priceactionlab.com/Blog/2010/10/proper-use-of-back-testing/
Looks like the answer was already given with detailed links. Hope that helps Snake
Quote from SnakeEYE:
but what if you were back tastingfrom the beginnig of the year and went live a couple of days ago?
It depends on the strategy.
This year we have seen trending markets, range bound markets, sideways moving markets, major sentiment changes, cycle reversals, momentum burst, a few other scenarios, and last but not least a major correction.
Its good to look at as much data as possible when back testing but this year alone has been good by it self to back test based on almost every way the market can move has moved this year alone.
Good luck back testing and Generating Alpha (Returns in excess of the current periods market movement)
The market is providing many opprotunities
Quote from SnakeEYE:
I scalp Asian session.In this case i should only avoid major corrections,wich happens 2-4 times a year,right?
I mean nothing is left to backtest
You do not have to avoid a major correct if your on the right side of the market. But scalping the Asian session during a range bound market is Smart, very smart
Good luck