Today I wanted to follow on from the fantastic amount of comments that we are receiving from the previous video, "stop strategy jumping." It seems that so many of you took a whole heap of value from that video and for that I am very thankful and to everyone who reached out and told their story or let me know that it really touched them.
As highly requested, I wanted to run through a basic way to start getting the grips with strategy back-testing. How can we go about back-testing our strategies to ensure that they are profitable for us in the long run? Take a look, have a listen and tune in. Set up an excel sheet the way I do and get back testing. There's only one way to do this, and it is to do the hard work.
Let me know what you guys find. I can go more in depth in the future, but for now. It seems like most people wanted to get to grips with the absolute basics, which is what I'm going to show you today.
If you have any questions at all, please the comment section is the place to be. As always, have a fantastic trading week and a fantastic weekend traders. I'll see you very soon.
Great video thank you - how do you account for different market conditions when backtesting? i.e you backtest during bull market but now its bearish? Or do you just use bar replay to go far enough back to try get different conditions? Or try 'forward testing' with small capital? Thanks
Daniel-kay
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Thanks for your time to make such a video
the5erstrading
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@Dabij, No problem! Thank you for your comment
aaronxie
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This is really helpful, thank you. Would you recommend manual backtesting like the approach you demonstrated in the video, or code it out in Pine script (takes a lot of time!) and run the strategy to backtest?
the5erstrading
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@aaronxie, Thank you Aaron! If your strategy is solid enough to be able to code, then go ahead and do that, but I prefer manual backtesting as you still have to make decisions yourself and can see how the chart reacts.
Trading_Dabby
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Thanks for taking your time and helping out beginners with how to start. Really appreciate your valuable content!