How & Why I do backtesting in trading
Hello everyone:
Here to do a quick educational video on how I do backtesting in trading.
I will utilize tradingview’s replay function and go over briefly on how I use it.
I will also explain the benefits of doing backtesting. How it will strengthen a trader’s mindset and analysis.
Key Concept on Backtesting:
-Doesn't matter what trading strategies/setup/style you use, you need to backtest it so it becomes second nature to you when you are doing your analysis on the market.
Simply watching your mentor’s screenshot and videos are not gonna be enough. Get hands on, do your analysis on past prices and see if they play out. How many times win and lose over the same setup on the same pair?
-When you see how your strategies played out in the past, the easier it will be for you to identify them.
Looking for a setup should be a simple task once you are familiar with your strategies. It should not take hours to do so.
-Your mind is “programmed” now into finding your strategies on the current market condition, regardless the other “noise."
Once you train your mind to understand your strategies will work, then you will simply filter out random things you hear and see. They won't bother you anymore.
-The more you see your strategies play out, the more confidence you become in your trading analysis. Trading is a mind game. Master your mind, master the game.
Understand that your trading success depends on you and you only. When you are confident in your trading plan and strategies, you simply will accelerate in your trading journey.
Feel free to comment and ask questions, Thank you.
Here to do a quick educational video on how I do backtesting in trading.
I will utilize tradingview’s replay function and go over briefly on how I use it.
I will also explain the benefits of doing backtesting. How it will strengthen a trader’s mindset and analysis.
Key Concept on Backtesting:
-Doesn't matter what trading strategies/setup/style you use, you need to backtest it so it becomes second nature to you when you are doing your analysis on the market.
Simply watching your mentor’s screenshot and videos are not gonna be enough. Get hands on, do your analysis on past prices and see if they play out. How many times win and lose over the same setup on the same pair?
-When you see how your strategies played out in the past, the easier it will be for you to identify them.
Looking for a setup should be a simple task once you are familiar with your strategies. It should not take hours to do so.
-Your mind is “programmed” now into finding your strategies on the current market condition, regardless the other “noise."
Once you train your mind to understand your strategies will work, then you will simply filter out random things you hear and see. They won't bother you anymore.
-The more you see your strategies play out, the more confidence you become in your trading analysis. Trading is a mind game. Master your mind, master the game.
Understand that your trading success depends on you and you only. When you are confident in your trading plan and strategies, you simply will accelerate in your trading journey.
Feel free to comment and ask questions, Thank you.
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