Back-testing - Does it help or
hinder?
Do the results of back testing
mirror the forward testing results.
Certainly the back tested results put
forward by the more unscrupulous purveyors of Forex Robot
Trading schemes are to be lightly dismissed. It is easy to
adjust the trading parameters retrospectively to suit the
result.
This is not what I am referring to here in
my title, although it could be the subject of another article.
What I am referring to is the back-testing that we
conduct on a Forex Robot that we have purchased.
We conduct a back test, a week, month or
year. We are feeling comfortable with what we see, and we feel
excited with what the future holds.
But, we remain cautious about whether the
program will perform in this manner going forward in live
trades, we remain wary to let it run with the high number of
lots that we back tested with.
It is a rational concern; after all we have
all heard and read the hyperbole about back testing is not to be
compared with forward results.
Ok, what is the truth
here?
Back testing does not have to deal with
good or bad news emanating from the USA primarily about the
state of the economy, this is true, which can sometimes throw
the markets it a tailspin.
What I have found is that the back testing
of Metatrader, whereas it is not the ideal medium, it is
reasonably indicative of the results going forward.
If, it has some downfalls, so be it, I
still find it to be a great assistance. I have not noticed any
great differences between back testing and forward results.
If the back testing is showing results that
you are comfortable with, then go live.
Start conservatively, with a reduced number
of lots, and evaluate the results on a 24 hour basis.
My other articles on Forex Robot Trading
can be found on my website which helps to solidify the comments
that I have placed here.
Please feel free to read them, as they
expand of issues that I raised in this article.
It is exciting to watch a Robot make the
trades without your constant concentration of the computer
screen.
I am firmly convinced
of the viability of Forex Robot Trading, and will continue to
trade in this manner.
