Shane D

For those new to backtesting, it is an extremely worthwhile mission.  It requires intense focus and does take up a lot of time.  The market can take up lots of your capital so it is one way to at least come armed to the battle with something other than bare hands.  I never traded the EURUSD on any other system so today, I started backtesting this currency pair.  I chose my timeframe, my stop placements, my trade management plan and went to work....candle by candle.

Even with only a handful of trades, I learnt a lot.  When the market intends to go in my direction, it will either do it quick or meander around. I wanted to give the trades time but also wanted to ensure my losses were minimum when the market did something else.  I liked a distant stop off the top and a fast decrease in risk when it moved in my favour using objective areas.  I felt very comfortable adjusting around certain levels especially when key levels (swings, round numbers) were in the same area.

I need about 20 more trades to decide if this is a pair/timeframe/plan I want to continue a bigger sample with.  Still, the expectancy on this small basket points to what could be a profitable addition. - Shane D.

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