Before You Trade ANYTHING!

[herry_fxhope]

it's pretty trivial to come up with a system that is profitable on a back test, and that the system can conform to whatever max draw down / sharpe / etc / parameters you so desire.
It's even relatively easy to come up with a system that is profitable on a forward basis as well.
The real trick isn't creating the right system, but rather it is using the right system. Thank you

[ForexGuy]

Originally Posted by herry_fxhope

it's pretty trivial to come up with a system that is profitable on a back test, and that the system can conform to whatever max draw down / sharpe / etc / parameters you so desire.
It's even relatively easy to come up with a system that is profitable on a forward basis as well.
The real trick isn't creating the right system, but rather it is using the right system. Thank you

I'll say again what I said the first time you posted this:

To suggest there is no value in backtesting shows a great lack of trading maturity.

[TC East]

Originally Posted by ForexGuy

ATR Stands for Average True Range - The range from high to low a pair will travel over a given period of time.

Is there a standard number of periods to use for ATR? I've seen 14 and 20 used by others, but wondering if there is some base number of periods or if it differs for different time frames...thx

[hlass]

Originally Posted by ForexGuy

I'll say again what I said the first time you posted this:

To suggest there is no value in backtesting shows a great lack of trading maturity.

I will second this, I am a pretty damn good trader, and no matter how I have traded in the past, I have always backtested how the system worked and also backtested what I have traded, there is no substitute to see what ones system did and the possibilities that lie within that system going forward
hlass

[uzo10]

Thanks for the great advice. Keep it up!

[ForexGuy]

Originally Posted by TC East

Is there a standard number of periods to use for ATR? I've seen 14 and 20 used by others, but wondering if there is some base number of periods or if it differs for different time frames...thx

No, there really isn't. It depends largely on how you choose to use it. Sorry I can't be more specific. It's just really preference.

[Juda2oo9]

Couldn't have said it better.....
now i need to make sure i do my research.....
should we stick to this forum only, or use several?

[ForexGuy]

Use any resource that gives you an edge. I would highly recommend you read my post "The facts about Online forums" located in the "Market Insights" section of this forum.

[studyolic]

ForexGuy,
very valuable advice. Thanks.

[uzo10]

hi forex guy,

please can you resend the trading method you posted in another excel format, like excel 2003. I dont have the 2007 version of excel.