Beginner's Guide For Traders About Backtesting ?
Backtesting is possibly one of the most underrated forms of education when it comes to trading.
In the markets, price always repeats itself so using the “replay” button on your Trading View platform is like having a cheat code.
Backtesting is easy once you know how.
Firstly you need to have a strategy in place which tells you when to enter and exit a trade. It should include all the variables you use to determine if a trade is worth taking.
Once you have your strategy you want to test it. Replay your charts to a time in the past and as the chart moves along place trade setups based on your strategy.
Do this multiple times using the same strategy on the same pair and get a win to loss ratio. If you placed 50 trade setups and 40 were winners, then the strategy is definitely one that you want to adopt in a live market.
TRADING VIEW HELPFUL TIP #1
First on the list, learning how to make objects only visible on certain timeframes.
This is helpful for several reasons, it helps you to keep your chart clean, helps you keep monthly, weekly and daily zones separate.
How do I do it?
Simply double tap the object you want to edit, go to the “visibility” tab and select what time frames you want the object to be visible on.
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