trendie
Legendary member
- Messages
- 6,875
- Likes
- 1,433
the thing about backtesting is that results tend to be based on taking all the signals.
backtesting also is based on knowing the end-result of a trade.
I would add some fudge factor, such as if my system said I expect to make 100 pips, I should consider forward-testing to get me about 70-80 pips of the 100, as the real-world, unless automatic, you are trading as much with your gut as rules, so you will occasionally drop out with 50, only to see you could have made 70, etc.
backtesting also is based on knowing the end-result of a trade.
I would add some fudge factor, such as if my system said I expect to make 100 pips, I should consider forward-testing to get me about 70-80 pips of the 100, as the real-world, unless automatic, you are trading as much with your gut as rules, so you will occasionally drop out with 50, only to see you could have made 70, etc.