does not mean you should ignore this statistic. This is a condition where performance results are tuned so high to the past they are no longer as accurate in the future. Divide the Nasdaq average by the S P 500 average to get the ratio. (See also: Basics of Trading Systems.) The average number of bars held is also very important to watch when developing a trading system. Results Metric Result Gross Winning Trades 173,364 Gross Losing Trades -77,344 Net Profit 96,020 Net Gain 109.4 Profit Factor.24 Winning Trade 38 Losing Trades 42 Win Percentage 48 Largest Winning Trade 18,103 Largest Losing Trade -12,311 Video Get more information by watching the video. When the testing period finishes we have to download recorded data about virtual stock trades into some good journal software where this data can be analyzed. FInVizs map showing securities across a range of sectors / industries Two currency correlations from Unicorn Bays Most / Least Correlated Securities The currencies I decided to backtest were: AIG (Financial Property / Casualty Insurance) DUK (Energy) GE (Industrial Goods Diversified Machinery) gild (Biotechnology) GS (Financial Investments). It is accomplished by reconstructing, with historical data, trades that would have occurred in the past using rules defined by a given strategy.
You can find the system here. You can view and modify it if you wish on TradingView. You need to back test your system and your strategy to see if you would be profitable in the stock market. I think it is critical for you to test your system and your strategy before you enter any.
Once you have those things in place just put on a few system testing trades. The eSignal Strategy Analyzer has six tabbed sections and more than 250 values useful for strategy performance analysis. Test at least 2 highly dissimilar / uncorrelated currencies to see how the strategy works against vastly different data sets. When a boxer loses a fight he goes back into the gym and starts training again. If our trades are based on some formula that can be defined, then it is possible to define strict rules for entries and exits. In order to further stress-test it, I coded up a Strategy in TradingView based on the rules of my trading system. This index should perform better than the S P when investors are feeling confident. It is often a good idea to backtest over a long time frame encompassing several different types of market conditions.