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How to Break Through in Trading

  #21 (permalink)

Legendary Market Wizard
Cleveland Ohio/United States
 
Trading Experience: Advanced
Platform: Tradestation
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Jeremy1984 View Post
Does this mean I have to learn how to backtest? Or do you recommend me manually going back and checking myself? I pride myself on having an amazing work ethic so whatever it takes I am up to it.

Manual backtesting is possible, but my experience is that it is easy t cheat or make mistakes. And the funny part is that the discrepancies almost always make your backtest look better than it is, giving you false confidence.

I recommend computer backtesting. I use Tradestation, but there are plenty of other software platforms around that do it. There are a TON of pitfalls though that you can run into. It is easy to keep backtests that are complete garbage. Also, not everything can be backtested correctly.

BUT, if you do it correctly, you can end up with historical results that have a reasonable chance of working going forward.

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