Back-testing a forex trading system

Source: www.forexautomaton.com

While it is true that past performance does not indicate the future, the only reliable information we have is about the past. A few important things make a difference between unbiased trading-system testing and self-delusion. Here I summarize my current understanding.


Read more...

  • CORRECT: WORLD FOREX: Dollar Maintains Rebound Into Afternoon

    ("=WORLD FOREX: Dollar Maintains Rebound Into Afternoon," at 1:01 pm EDT, misstated the reporting period for the ISM non-manufacturing activity index in the ... See all stories on this...

  • One Premium Bond to Protect Your Wealth

    Imagine buying a property that’s guaranteed to go down 3% to 5% every year. I’m not talking about the drop in the real estate market since...

  • Monday Sector Leaders: Water Utilities, Metals Fabrication & Products

    In trading on Monday, water utilities shares were relative leaders, up on the day by about 2.6%. Leading the group were shares of Tri Tech...

  • USD/JPY retrenching; Exporters seen selling rallies

    Japanese exporters have returned to the stage in USD/JPY for the first time in a while. They have offers from 98.80 up through 99.00, traders report. Mid-East accounts were rumored buyers in early US trade but ran into signficant offers in the 99.80/85 region. Given Japan’s rapidly...

  • Global miner BHP take a 58% price cut in coal

    BHP Billiton has agreed to a 58% price cut for the coal it sells to major steel makers. This is pretty much in line with the expected cut of 60% analysts had forecast. The deal signals a looming price cut in other main steel making ingredient, Iron ore. The 58% cut in price equates to a benchmark...