The Secret Art of Backtesting
Trade untested rules and you might as well trade with your eyes closed. Why backtesting builds the confidence that keeps traders from wrecking their own systems.
The Blog
The writing that outlasted every version number: testing your rules, managing your money, and a little MetaStock formula craft.
Trade untested rules and you might as well trade with your eyes closed. Why backtesting builds the confidence that keeps traders from wrecking their own systems.
Psychology 50%, money management 30%, analysis 20%. Most traders spend all their time on the smallest slice.
The famous Turtle rules covered six decisions. If your system answers fewer, it is not a system yet.
Setups form in every time frame. Managing time as deliberately as price, including the triple-screen approach.
Using DMI and ADX to tell trending markets from chop, with the exact MetaStock formulas. Includes video.
A small MetaStock formula-language lesson: LLV, and how to detect a new 40-period low properly.
Want the software these techniques run on? MetaStock is free for 30 days.